MASTER 

NEGATIVE 
NO.  94-82075 


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Author: 


Packard,  Silas  Sadler 


Title: 


Bank  book-keeping 


Place: 


New  York 


Date: 


[1 897] 


MASTER   NEGATIVE  « 


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Packard,  S[ilaS]  S[adler]  1826-1898. 

Bank  book-keeping;  a  text-book  for  business  schools 
and  for  private  students,  by  S.  S.  Packard  ...  New 
York,  S.  S.  Packard  [''ISQ?] 

88  p.    illus.,  forms.    28*". 
Copyright  record  has  ^1898. 


1.  Banks  and  banking— Accounting.    2.  Bookkeeping. 


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LIBRARY 


School  of  Business 


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BANK 
BOOK-KEEPING 


A  TEXT-BOOK   FOR   BUSINESS   SCHOOLS 
AND  FOR  PRIVATE  STUDENTS 


BY 


S.    S.    PACKARD 

PRESIDENT   OF   PACKARD'S   BUSINESS   COLLEGE,   NEW    YORK 


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NEW  YORK 

S.  S.  PACKARD,  Publisher 

loi  East  230  Strlet 


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THE   NEW   PACKARD  COMMERCIAL   ARITHMETIC 

360  Pages,  8vo,  Cloth,  $1.50. 
KEY  TO  ABOVE  (for  Teachers  only),  $1.00. 

The  New  Arithmetic  is  published  both  with  and  without  answers.     Unless  otherwise  ordered, 
books  with  answers  will  be  sent. 


THE   PACKARD   COMMERCIAL  ARITHMETIC. 

School  Edition,  300  Paces,  12MO,  $1.00. 
KEY  TO  ABOVE  (for  Teachers  only),  $1.00. 

The  School  Edition  is  an  abridgment  of  the  New  Packard  Commercial  Arithmetic,  and  has 
been  prepared  expressly  for  the  commercial  departments  of  high  schools  and  for  short  course  com- 
mercial schools,  including  evening  classes. 


THE    PACKARD    METHOD    OF    TEACHING   BOOKKEEPING. 

150  Large  8vo  Pages,  Cloth,  $1.25 
TEACHER'S  GUIDE  OR  KEY  to  above,  62  Pages,  8vo.     Price  to  Teachers,  75  cents. 


PACKARD'S   PROGRESSIVE   BUSINESS   PRACTICE. 

Tests  1,  II  and  III  now  ready. 


PACKARD'S   LESSONS   IN   MUNSON   PHONOGRAPHY. 

Text-book,  supplemented  by  a  large  variety  of  reading  matter.   Circular  on  Application. 


PUBLISHER'S    STATEMENT. 

This  is  a  text-book  on  Bank  Bookkeeping,  made  to  fill  the  requirements  of  to-day.  The 
material  has  been  obtained  from  the  leading  banks  of  New  York  and  Chicago,  and  the  methods 
of  doing  business  followed  as  closely  as  possible;  the  purpose  being  to  give  to  schools  and  private 
learners  the  readiest  and  surest  means  of  acquiring  a  practical  knowledge  of  the  subject. 

The  plan  was  conceived,  and  has  been  carried  out  as  faithfully  as  possible,  of  so  classifying  the 
work  as  to  give  to  each  recording  officer  or  clerk  his  particular  Hne  of  duties,  and  of  so  adjusting 
these  duties  that  when  each  has  done  his  part  the  complete  record  of  the  business  to  its  minutest 
detail  will  have  been  made.  This  is  the  feature  of  the  book  to  which  attention  is  particularly 
called;  and  which  it  is  believed  will  commend  it  not  only  to  teachers  but  to  bankers  and  practical 
accountants.  The  entire  scojie  of  the  transactions  is  divided  into  four  periods,  representing  four 
consecutive  months,  and  sufficiently  recognizing  the  movement  of  time  to  permit  the  maturity  of 
l>aper  and  to  illustrate  the  important  feature  of  earning  which  comes  through  loans.  In  order  to 
make  dividends  possible  the  single  transactions  have  been  made  larger  in  volume  than  might 
ordinarily  occur;  but  the  natural  sequence  has  been  maintained,  and  no  fictions  or  eccentricities 
resorted  to. 

The  work  has  been  thoroughly  tested,  and  has,  in  fact,  grown  out  of  the  demands  of  the  class 
room.  It  is  feasible  and  practical  throughout;  and  if  followed  according  to  its  design,  will 
accomplish  its  puqwse. 

It  has  been  found  best  to  take  one  period  at  a  time,  completing  the  records  of  each  department 
through  that  period,  thus  following  the  separate  transactions  through  the  various  books  and 
departments  to  the  final  result  in  the  ledgers.  This  gives  to  the  student  a  comprehensive  view  of 
the  subject,  and  enables  him  to  work  the  succeeding  periods  with  comparatively  little  help.  It  is 
not  necessary  that  the  entire  four  periods  should  be  written  up,  but  no  earnest  student  is  likely  to 
stop  short  of  the  whole.  Complete  results  can  be  obtained,  however,  at  the  end  of  any  period;  and 
It  may  be  advisable  to  close  the  ledger  accounts  and  get  these  results  at  least  once  before  the 
conclusion  of  the  entire  series.     (See  last  paragraph,  page  67.) 

In  order  to  get  directly  at  the  work,  the  books  are  opened  from  a  statement  showing  the 
condition  of  a  running  bank,  instead  of  going  through  the  slow  processes  of  opening  a  bank  and 
gradually  bringing  it  to  a  paying  condition.  Care  has  been  taken,  also,  to  produce  sufficient 
material  for  all  necessary  reports  and  statements,  and  to  conform  to  all  the  requirements  of  a 
first-class  bank. 

In  presenting  examples  of  forms,  both  as  to  i>apers  and  records,  the  point  has  been  to  make 
them  business-like,  in  very  truth.  The  absence  of  copy-book  exactness  in  the  script  forms  will  be 
noted  and  appreciated. 

The  publisher  takes  this  occasion  to  express  his  earnest  appreciation  of  the  ready  service 
rendered  by  the  several  bankers  of  New  York  and  Chicago  who  have  been  freely  consulted-  and 
esi>ecially  of  the  valuable  aid  given  by  James  G.  Cannon,  Vice-President  of  the  Fourth  National 
Bank,  New  York,  and  H.  H.  Swasey,  now  Secretary  of  the  Fifth  Avenue  Trust  Company  New 
York,  as  also  for  the  important  assistance  of  Mr.  E.  M.  Barber,  in  the  detailed  presentment  of  the 
matter. 

It  is  not  presumed  that  the  book  is  perfect  or  free  from  errors;  and  the  publisher  stands  ready 
to  accept  criticisms  and  corrections,  and  to  profit  by  them. 


Copyright,  igg?,  av 
S.  S.  PACKARD 


BANK     BOOK-KEEPING. 


CHAPTER  I. 
BANKS  AND  THEIR  MANAGEMENT. 

I*  A  Commercial  Bank  is  an  institution  designed  to  aid  trade  and  commerce  by  offering  to 
the  public  important  services,  which  may  be  specified  as  follows: 

First.  By  providing  a  place  where  money  may  be  deposited,  at  times  and  in  amounts  to  suit 
the  convenience  of  the  de|x>sitor. 

Second.  By  permitting  the  money  so  deposited  to  be  withdrawn  upon  a  simple  order,  at  such 
time  and  in  such  amounts  as  the  depositor  may  find  convenient,  the  canceled  check  when  returned 
by  the  bank  affording  proof  that  the  sum  has  been  paid. 

Third.  By  undertaking  for  its  dealers  the  collection  of  commercial  paper,  such  as  bills  or 
notes,  mercantile  drafts,  Iwnds,  coupons,  etc. 

Fourth.  By  issuing  bankers'  drafts,  bills  of  exchange,  and  letters  of  credit,  which  facilitate 
the  payment  of  debts  at  distant  places  without  the  actual  transfer  of  funds,  and  affording  people 
who  travel  a  means  of  obtaining  money  in  foreign  lands,  or  at  points  distant  from  their  homes,  thus 
avoiding  the  risk  and  danger  of  carrying  it  about. 

Fifth.  By  issuing  certificates  of  deposit  for  money  left  with  the  bank,  payable  either  on 
demand  or  at  a  specified  time,  and  upon  which  interest  may  or  may  not  be  allowed,  according  to 
the  terms  of  deposit. 

Sixth.     By  tendering  its  superior  facilities  for  the  safe-keeping  of  money. 

[In  the  early  history  of  banking  the  safe-keeping  of  money  was  the  principal  service  rendered  the  public,  bnt  recent 
devices,  so  generally  in  use  in  stores  and  offices  for  the  safe-keeping  of  valuables  of  all  kinds,  have  made  this  feature  of  the 
bank  of  secondary  consideration.] 

Sez'enth.  By  reducing  risk  and  inconvenience  in  handling  money,  through  the  intervention  of 
orders  or  checks,  which  can  be  cashed  only  upon  proper  endorsement. 

S*  The  Business  of  Banking  ranks  among  the  chief  activities  of  commerce  in  Its  service  to 
the  public,  and  holds  a  position  as  legitimate  and  honorable  as  that  held  by  any  mercantile  pursuit. 

The  object  of  those  who  engage  in  banking  is  primarily  that  of  gain;  and  this  is  sought,  as 
in  other  kinds  of  business,  through  offering  to  the  public  what  the  public  needs  and  will  j)ay  for. 
The  banker  establishes  a  secure  place  for  the  keeping  of  the  money  of  the  merchant  and  the 
manufacturer;  pays  it  out  on  their  order;  attends  to  the  collection  of  their  notes,  drafts,  and 
checks,  and  serves  as  an  agent  for  both  borrower  and  lender. 

3*  Earnings. — The  principal  source  of  a  bank's  earnings  is  the  discounting  of  business  paper 
and  the  lending  of  money  on  proper  security.  Charges  for  collecting  notes  and  drafts,  interest 
upon  bonds  and  returns  from  such  securities  as  it  holds,  commissions  for  the  payment  of  coupons, 
and  premiums  for  the  issuing  of  drafts  to  outsiders  are  also  among  the  sources  of  income.  The 
bank's  outlay  includes  interest  on  deposits  of  banks  and  bankers,  cost  of  collecting  foreign  items, 
taxes,  repairs,  salaries,  and  the  ordinary  office  expenses. 

The  funds  of  a  bank  available  for  lending  purposes  accrue:  (i)  from  the  amounts  paid  in  by 
the  stockholders;  (2)  from  accumulated  surplus;  and  (3)  from  deposits  of  individual  dealers, 
corporations,  banks  antl  bankers,  less  such  amount  as  the  law  requires  shall  be  set  aside  for  the 


BANK    BOOK-KEEPING 

payment  of  depositors  and  the  redemption  of  outstanding  notes.     Let 
that  at  the  beginning  of  the  year  the  condition  of  the  bank  is  as  follows: 


us 


se,  for  example, 


Resources. 

Cash $600000 


Liabilities* 

Capital  stock  ami  surplus $100000 

Deposits 500000 

$600000  $600000 

Assuming  that  it  will  keep  on  hand  $150,000  as  reserve  fund,  there  remains  $450,060,  or  three- 
fourths  of  the  total  amount  of  cash  in  its  possession,  which  it  may  lend,  either  to  its  depositors  or 
to  such  other  persons  as  can  furnish  security.  If  these  loans  were  permitted  to  run  for  the  entire 
year  at  a  uniform  rate  of  six  per  cent,  allowing  for  current  expenses,  the  condition  of  the  bank 
would  be  as  follows: 


Resources* 

Loans  and  discounts $450000 

Cash 160000 

Expenses 17000 

$627000 


Liabilities* 

Capital  stock  and  surplus $100000 

Due  depositors 500000 

Interest 27000 


$627000 

Deducting  the  expenses  from  the  earnings  we  have  as  net  gain  $10,000,  which,  if  the  total 
earnings  could  be  divided,  would  permit  a  dividend  to  stockholders  of  ten  per  cent. 

This  illustration  shows  how  a  bank  can  afford  to  receive  money  on  deposit  and  hold  the  same 
subject  to  the  order  of  the  depositor,  without  direct  remuneration. 

4*  Deakrs  or  Customers  are  persons  who  have  regular  dealings  with  a  bank  by  depositing 
therein  their  money  and  issuing  against  their  account  checks  or  orders.  Transient  customers,  or 
patrons,  are  persons  who  use  a  bank  for  some  specific  service,  such  as  the  purchase  of  exchange, 
the  collection  of  notes  or  checks,  the  issue  of  certificates  of  deposit,  etc.,  but  who  are  not  regular 
dealers. 

5.  Officers* — The  officers  of  a  bank  are  those  chosen  by  the  Board  of  Directors  to  superintend 
and  direct  its  affairs.  Usually,  these  are  a  President  and  Cashier.  Many  banks  have  also  as  active 
officers,  Vice-President  and  .Assistant  Cashier.  The  necessity  of  these  last  named  de|)ends  upon 
the  location  of  the  bank  and  the  character  and  extent  of  its  business. 

6.  The  President  presides  at  all  meetings  of  the  Board  of  Directors,  and  is  the  executive 
heap!  of  the  bank.  He  furnishes  such  information  concerning  its  transactions  as  may  be  desired  by 
the  directors.  From  him  is  expected  to  emanate  the  policy  which  will  govern  the  Ijank  in  its 
operations,  and  upon  him  rests  the  responsibility  for  its  success.  He  must  be  active  and  influential 
in  attracting  depositors,  and  equally  alert  in  declining  to  discount  beyond  the  limits  of  safety  and 
prudence. 

The  general  standing  of  a  bank  in  the  business  world  hinges  largely  upon  the  integrity  and 
honor  of  its  president.  He  should  possess  that  happy  equanimity  of  tem|)erament  which  will  save 
him  from  inconsiderate  action,  combined  with  a  ready  knowledge  of  character  that  will  give  him 
the  command  of  forces,  both  within  and  without  the  bank. 

7.  The  Vice-President  acts  as  the  executive  officer  of  the  bank  in  the  absence  of  the 
president.  In  some  of  the  large  banks  in  the  large  cities,  the  vice-president  is  a  high-salaried 
officer,  who  not  only  shares  responsibility  with  the  president,  but  has  greatly  the  direction  of  the 
running  of  the  bank.  In  other  cases  he  is  chosen  with  a  view  to  increasing  the  efficiency  of 
the  bank's  service  in  a  given  direction,  as  the  management  of  its  credit  department,  country 
business,  etc. 

8.  The  Cashier  is  generally  the  executive  officer  of  the  bank.  To  him  belongs  the  general 
supervision  of  various  departments,  and  usually  he  employs  the  clerks  and  prescribes  their  duties. 
The  correspondence  of  the  bank  is  conducted  in  his  name.     He  is  appointed  by  the  directors,  and 


"li^StiiiimiMtiiifiV 


BANKS    AND    THEIR    MANAGEMENT 

is  directly  responsible  to  them.  He  generally  acts  as  Secretary  of  the  Board  of  Directors,  and  as 
such  he  keeps  a  record  of  all  business  transacted  at  their  meetings.  His  name,  as  well  as  that  of 
the  President,  is  required  upon  the  certificates  of  stock.  He  signs  the  checks  of  the  bank,  which 
are  issued  for  various  purposes,  draws  drafts  on  correspondents,  signs  his  name  to  bills  of  the  bank 
which  circulate  as  money.  Upon  him  more  directly  devolves  the  task  of  building  up  the  business, 
and  making  it  profitable,  and  at  the  same  time  commending  it  to  public  favor. 

9«  The  Assistant  Cashier,  where  such  officer  is  required,  is  generally  responsible  for  the 
performance  of  specific  duties,  which  would  otherwise  devolve  upon  the  cashier.  He  is,  in  fact, 
what  his  name  implies,  an  assistant  to  the  cashier.  He  is  appointed  by  the  Board,  and  his  official 
signature  is  recognized  in  everything,  except  in  rejxjrts  to  the  Comptroller  of  the  Currency. 

IO«  The  Chief  Qerkt  in  the  absence  of  an  active  vice-president  and  an  assistant  cashier, 
has  general  management  of  the  clerical  work  of  the  bank.  He  settles  all  matters  not  involving 
questions  of  policy  which  may  be  presented  by  the  tellers  or  book-keepers,  and  sees  that  the  routine 
machinery  is  kept  in  working  order. 

II*  The  Check  Qerk  prepares  a  list  of  the  paid  checks  of  dealers  preparatory  to  their 
delivery  to  the  ledger-keeper  or  dealers'  book-keeper.  In  large  banks  there  are  usually  a  number 
of  such  clerks,  divided  into  groups,  each  group  performing  a  particular  part  of  the  work.  Thus, 
one  group  assorts  and  lists  the  checks  which  come  from  the  clearing-house;  another,  the  checks 
paid  by  the  paying  teller;  and  still  another,  those  received  in  the  deposits,  and  by  the  note  teller 
for  the  payment  of  obligations  held  by  the  bank.  Other  clerks,  known  as  "  listing  clerks,"  prepare 
lists  of  the  exchanges  which  are  to  be  sent  to  the  clearing-house. 

!*•  The  Collection  Qerk  has  charge  of  all  the  paper  to  be  sent  for  collection  or  presentment 
at  distant  points.  He  sees  that  such  paper  is  properly  "  timed,"  and  that  notices  pertaining  to 
collections  are  sent  out  properly  and  promptly.  He  examines  the  endorsements  on  paper  passing 
through  his  hands,  and  keeps  a  record  of  a  i  that  is  received,  remitted,  paid,  dishonored  and 
returned.  He  keeps  the  collection  ticklers  and  collection  registers,  and  is  responsible  for  the 
safe-keeping  of  the  notes,  drafts  or  other  items  left  for  collection,  and  when  such  paper  leaves  his 
hands  his  records  must  show  at  once  what  disposition  has  been  made  of  it. 

13.  The  Country  Book-keeper  keeps  the  accounts  of  banks,  bankers  and  depositors  at  distant 
places.  He  receives  from  all  such  the  letters  containing  remittances  and  other  items  for  credit  to 
their  accounts.  He  has  charge  of  the  bank  and  collection  ledgers,  calculates  interest  on  accounts 
entitled  thereto,  and  makes  the  proper  entries  thereof.  He  prepares  the  periodical  statements,  and 
compares  his  own  books  with  the  reconcilement  sheets  and  statements  of  other  banks.  He  must 
keep  a  close  watch  over  the  payment  of  checks  and  drafts  drawn  by  this  class  of  customers  and 
report  any  case  of  overdraft. 

14.  The  Dealers'  Book-keeper  has  charge  of  the  city  dealers'  accounts.  The  credits  for 
such  accounts  appear  on  the  credit  books  as  made  from  deposit  slips,  and  such  items  as  come  from 
the  collection  and  discount  departments.  The  charges  against  the  accounts  are  made  from  debit 
books  in  which  are  listed  the  checks  of  dealers  paid  by  the  paying  teller;  those  received  in  the 
deposits  or  from  the  clearing-house,  certified  checks  from  the  certification-book,  and  unpaid  cash 
items  returned  through  the  collection  department,  notes  paid  by  the  bank,  etc.  The  dealers'  pass- 
l)ooks  come  to  him  to  be  written  up,  and  if  he  does  not  make  up  the  voucher-lists  of  canceled 
checks  for  delivery  to  the  dealers  and  balance  such  books  himself,  he  will  see  that  it  is  accurately 
and  promptly  done. 

15*  The  Ledgfer-'/Ceepers  have  charge  of  the  balance  ledgers,  the  number  of  which  depends 
upon  the  extent  of  the  ousiness  and  subdivisions  of  the  work.  Ordinarily,  there  is  a  balance  ledger 
for  each  ledger  con'.Jning  accounts  of  dealers,  banks  and  bankers,  both  city  and  foreign,  these 
ledgers  being  practically  duplicates  of  the  regular  ledgers.  The  ledger-keeper  must  be  so  familiar 
with  the  accounts  under  his  charge  as  to  be  able  at  once  to  advise  the  teller  concerning  any  one 


BANK    BOOK-KEEPING 


that  may  be  inquired  about,  and  to  refuse  any  checks  which  would  cause  an  overdraft.  This  is 
particularly  true  of  city  dealers'  accounts,  which  may  be  questioned  at  any  moment.  Aggregates 
only  are  carried  to  these  ledgers,  the  itemized  records  being  made  in  the  ledgers  kept  by  the 
dealers'  book-keepers. 

16.  The  Discount  Qerk  keeps  the  record  of  paper  offered  for  discount  and  of  that  dis- 
counted or  purchased  by  the  bank.  He  has  in  his  possession  the  greater  part  of  all  the  notes  held 
by  the  bank,  which  often  represent  the  principal  part  of  the  bank's  resources.  He  has  charge 
of  the  offering-book,  the  discount  register,  bill-books,  discount  ticklers,  and  discount  ledgers. 
From  the  bill-books  and  discount  *ledgers  are  ascertained  the  average  amount  of  a  dealer's 
discounts  and  hfs  liability  as  endorser  of  paper  held  by  the  bank. 

17.  The  Note  Teller  usually  has  charge  of  all  irregular  business,  but  his  real  duty  is  to 
collect  time  paper  on  the  day  that  it  matures.  He  receives  from  the  discount  clerk  the  discounted 
notes,  and  from  the  collection  clerk  the  notes  that  come  through  that  department.  Paper  payable 
at  the  bank  the  note  teller  retains  at  his  desk,  and  that  payable  at  other  banks  or  elsewhere  in  the 
city  he  sends  out  by  messengers.  He  usually  attends  to  all  business  with  other  banks  in  and  out 
of  the  city.  In  some  of  the  large  banks  this  department  is  divided,  giving  the  mail  receipts  and 
clearing-house  items  to  the  mail  teller  and  exchange  teller,  respectively.  He  has  general  charge 
of  the  messengers  or  runners,  and  usually  issues  certificates  of  deposit. 

18.  The  Receiving  TeUer  receives  funds  as  they  are  presented  and  credits  them  on  the 
pass-book,  or  bank-book,  as  it  is  generally  called,  of  the  depositor.  He  must  examine  the  endorse- 
ments on  checks  and  other  cash  items  brought  to  him,  count  the  currency  and  coin,  and  thus 
critically  go  over  the  deposit  tickets  before  entering  the  amount  in  the  dealer's  pass-book.  The 
receiving  teller  must  be  thoroughly  posted  about  counterfeit  and  spurious  money,  and  is  expected 
to  be  able  to  detect  a  bad  bank  note  the  instant  he  sees  it. 

19.  The  Payingf  Teller  is  the  principal  person  to  whom  is  entrusted  the  funds  of  the  bank. 
To  a  certain  degree,  he  is  the  sole  custodian,  though  generally  the  cashier  shares  in  this  respt)n- 
sibility.  Chiefly,  it  is  the  duty  of  the  paying  teller  to  cash  the  checks  of  the  depositors  when 
presented  at  his  counter.  Checks  are  often  presented,  however,  not  for  payment  but  for  certification. 
In  cashing  dealers'  checks  or  certifying  them  for  payment  great  care  and  much  experience  are 
required.  The  teller  must  know  that  the  signature  is  correct,  that  there  is  a  sufficient  amount  to 
the  dealer's  credit,  and  that  the  person  who  offers  the  check  is  entitled  to  draw  the  money.  In 
certifying  checks  it  is  not  so  necessary  to  examine  the  endorsement  as  it  is  when  they  are  presented 
for  payment,  but  it  must  be  known  that  the  signature  is  genuine.  National  banks  are  forbidden 
by  law  to  overcertify  the  checks  of  their  customers.  The  paying  teller  must  make  up  his  statement 
each  day  and  prove  his  work  before  he  leaves  the  bank. 


The  General  Book-keeper  is  the  custodian  of  the  accounts  and  records  that  show  the 
financial  condition  of  the  bank.  Most  of  the  data  for  his  work  come  from  the  different  depart- 
ments, and  in  fact  his  books  show  a  summary  of  the  entire  financial  operations.  He  has  charge  of 
the  general  debit  book,  general  credit  book,  stock  ledger,  transfer  books,  statement  books,  general 
balance  ledger,  and  general  ledger.  From  these  books  are  prepared  the  statements  required  by 
law  to  be  made  from  time  to  time  for  the  information  of  the  Comptroller  of  the  Currency,  or  of  the 
Banking  Deiiartment  of  the  State,  as  the  case  may  be;  the  weekly  report  to  the  clearing-house; 
and  such  daily  reports  as  may  be  required  by  the  officers  of  the  bank. 

The  general  book-keeper  must  thoroughly  understand  the  system  of  detail  in  use  in  all  the 
different  departments  of  the  bank.  He  should  ix)ssess  a  thorough  knowledge  of  the  principles  of 
book-keeping,  and  his  books  and  exhibits  should  be  models,  as  to  neatness  and  regularity.  He 
should  not  be  hampered  with  an  unnecessary  amount  of  detail  work,  but  should  take  time  to 
carefully  scrutinize  the  general  system  of  the  bank,  occasionally  performing  the  duties  of  auditor 
in  the  different  departments,  thus  furnishing  additional  safeguards,  improving  the  service  of  the 
bank,  and  satisfying  all  reasonable  demands  of  the  bank's  customers,  and  of  the  public. 


ii 


CHAPTER   11. 
THE   SECOND   TELLER. 

ai.  The  chief  work  of  the  second  or  receiving  teller  is  receiving  deposits  of  dealers.  Many 
banks  require  all  funds  received  to  pass  through  the  receiving  teller's  hands,  thereby  making  his 
records  a  complete  exhibit  of  all  cash  received  by  the  bank.  The  plan  of  this  set  permits  certain 
exceptions  to  this  practice,  as  will  be  noted  under  the  work  of  the  third  teller. 

aa.  The  Signature  Book* — A  person  desiring  to  open  an  account  with  a  bank,  makes 
application  to  the  cashier.  If  the  cashier  is  satisfied  to  receive  the  account,  he  requests  the  applicant 
to  write  his  name  in  the  "signature-book."  The  signature-book  contains  columns  also  in  which 
the  cashier  enters  the  applicant's  address,  occupation,  and  the  name  of  the  person  by  whom  he  was 
introduced.  For  the  convenience  of  the  bank,  an  additional  signature  is  frequently  required  to  be 
written  uix)n  a  card,  which  caril  may  be  filed  in  a  case  alphabetically  arranged  within  the  counter 
of  the  paying  teller.  Upon  the  signature  or  signatures  so  preserved  only  are  checks  to  be  honored. 
If  the  account  is  opened  in  the  name  of  a  firm,  and  it  is  desired  that  more  than  one  person  shall 
sign  checks,  the  firm's  signature  must  be  left  with  the  bank  in  the  handwriting  of  the  several 
persons  who  are  to  have  authority  to  draw. 

The  applicant  is  then  supplied  with  a  lx)ok  of  blank  checks,  a  number  of  deposit  tickets,  and  a 
pas.s-book.     He  commences  his  dealings  by  making  a  deposit ;   the  funds  deposited  and  a  properly 
made  out  deposit  ticket  being  handed,  together 
with  the  pass-book,  to  the  receiving  teller. 

aj.  The  Deposit  Ticket.— Banks  usually 
recjuire  that  the  tleposit  ticket  must  show  the 
amounts  in  coin  and  bills  separately,  as  also 
the  separate  enumeration  of  checks  or  other 
bankable  items.  A  special  column  is  sometimes 
provided  for  the  separation  of  "out  of  town" 
items.  Turning  the  pass-book  face  down,  and 
placing  the  deposit  ticket  before  him  with  a 
weight  across  its  top,  the  teller  counts  the  coin 
and  bills  ;  if  found  to  agree  with  the  amount 
on  the  ticket  he  checks  off  the  items  at  the  left 
of  the  amount.  Each  check,  draft,  or  other 
item,  is  then  examined  to  see  that  it  is  properly 
endorsed  by  the  dejx)sitor  and  as  approved  is 
checked  off  and  classified  as  follows:  If  drawn 
on  a  bank  which  is  a  member  of  the  Clearing 
House  Association  the  clearing-house  number 
of  that  bank  is  placed  opposite  the  item  instead 
of  the  check  mark;  if  an  out-of-town  item 
(unless  a  separate  column  is  provided  on  the 
ticket)  a  cross  (X)  is  used,  meaning  "Foreign"; 
if  |>ayable  by  a  private  banking-house,  or  bank 
not  a  member  of  the  clearing-house  the  letter 
"O"  is  used,  which  signifies  "Office,"  a  term 
meaning  "at  a  banking  office  in  the  city";  that 
is,  the  item  must  be  sent  by  messenger  and 
payment  received  in  cash,  or,  more  generally, 
by  acceptance  payable  at  a  certain  bank,  after  forxi  of  deposit  ticket. 


BANK    BOOK-KEEPING 


which  it  can  then  be  returned  and  entered  with  the  exchanges  for  the  clearing-house  the  following 
day;  and  lastly,  checks  and  drafts  drawn  u[x>n  our  own  bank  are  indicated  by  the  letter  "H." 

[The  expression  "member  of  the  clearing-house"  is  intended  to  include  those  "sub-banks"  which,  while  not  direct 
members,  arrange  to  "  clear  "  their  items  through  some  particular  bank  which  is  a  member.  The  letters  and  symbols  here 
used  in  checking  the  deposit  ticket  are  purely  arbitrary  and  differ  in  different  banks.  In  some  large  banks  where  the 
deposits  arc  heavy  the  tellers  omit  all  such  marking,  and  merely  check  each  amount  by  drawing  a  line  through  it.) 

The  receipts  from  depositors  then  consist  of  five  classes  of  items; 

1.  Coin  and  bills. 

2.  Checks,  drafts,  orders,  etc.,  payable  through  the  clearing-house,— generally  designated 
"exchanges." 

3.  Checks  or  drafts  payable  out  of  town. 

4.  Checks  or  drafts  payable  by  bankers  in  our  city  who  are  not  members  of  the  clearing-house. 

5.  Checks  and  drafts  drawn  on  our  own  bank, 

24.  The  Pass  Book.— The  teller  completes  the  transaction  by  entering  in  the  pass-book  the 
date,  his  initial,  and  the  total  amount  of  the  ticket,  which  book  the  dealer  holds  in  his  possession 
as  a  voucher,  serving  as  a  receipt  for  his  deposit. 

25.  The  Receiving:  Teller's  Records.— The  number  and  arrangement  of  the  books  kept  by 
the  receiving  teller  depend  ujwn  the  particular  routine  of  the  bank  and  the  classification  of  the 
deposit  items.  In  some  cases  this  routine  requires  an  exhibit  only  of  the  totals  of  the  deposit 
tickets,  which  may  be  kept  upon  a  sheet  of  paper  and  when  footed  at  the  close  of  the  day's 
business,  gives  only  the  aggregate  of  receipts  from  all  sources.  In  other  cases  the  teller  keeps  a 
cash-book  or  blotter  ruled  with  a  number  of  columns  for  dividing  the  receipts  according  to  their 
character,  keeping  the  receipts  in  coin,  bills,  out-of-town  items,  clearing-house  items,  etc.,  separate. 
The  principal  purpt)se  of  these  records  is  to  enable  the  teller  to  obtain  a  proof  of  his  receipts  and 
disbursements  at  the  end  of  the  day. 

In  this  set  the  student  will  prepare  a  sheet 
upon  which  the  names  of  the  depositors  will  be 
written  and  the  amounts  of  the  tickets  extended 
into  columns  corresponding  with  the  prescribed 
arrangement  of  the  dealers'  ledgers — the  first 
column  containing  the  deposits  of  dealers  whose 
names  begin  with  the  letters  from  A  to  L;  the 
second,  those  from  M  to  Z. 

In    large   banks   the    deposit    tickets   are 
usually  transferred  immediately  to  the  ledger- 
keeper  who  enters  the  amounts  in  the  balance 
ledger,  after  which  they  are  listed  upon  the  dealers'  debit  book,  preparatory  to  posting  to  the 
dealers'  accounts  in  the  dealers'  ledgers. 

a6.     Listing.— The  teller  assorts  the  checks  and  drafts  into  four  divisions:  City;   Foreign; 

Clearing  House;  and  Bank.  The  clearing- 
house items  are  handed  to  the  "settling  clerk," 
who  is  usually  the  first  as.sistant  of  the  receiving 
teller  and  has  charge  of  the  clearing-house 
rack.  The  process  of  preparing  these  items  for 
delivery  at  the  clearing-house  will  be  hereafter 
explained  in  the  description  of  the  Clearing 
House. 

Separate  lists  are  made  by  the  teller  or  his 
assistants  of  each  of  the  three  remaining  items. 
The  process  of  "listmg"  these  items  is  here 
suggested,  and  the  aggregate  amount  of  each 
class  is  given,  which  total  amount  is  entered  in 


Depoaitora 

i 

• 
A-L 

M-Z 

J.  II.  Newman 

I2Q3 

II 

Cooper,  Hewitt  &  Co. 

64725 

71 

Henry  Mailbrd 

6319 

89 

Lord  &  Taylor 

589 

09 

A.  Iselin,  Jr. 

5481 

75 

Home  Debita 

City  Office 

Poreifn  Office : 

ClMfing  Honac 

137 

10 

14 

1 
02 

225 

140 

99 

90 

': 

7 

96 

1300 

1 

275 

10 

18 

31 

07 

1839 

33 

1479 

50 

123 

07 

6 

as 

45 

34j 

60 

29 

05  ! 

95 

42 

170 

50 

61800 

274 

31 

53  1 

3462 

ro 

1000 

85 

89 

50 

! 

500 

18 

40157 

01 

63 

29 

933 

05 

28604 

15 

*** 

*» 

•  •« 

*• 

»•♦» 

22 

tt*** 

«• 

258144 

74 

2034 

99 

179633 

1373517 

59 

10 


THE    SECOND    TELLER 

the  receiving  teller's  proof  at  the  end  of  the  day.  After  being  listed,  the  "  City  Office  "  items  are 
handed  to  the  note  teller;  the  "Foreign  Office"  items  to  the  collection  clerk;  and  the  checks  on 
our  bank  to  the  ledger-keeper,  who  charges  them  to  the  dealers'  accounts.  It  is  imjjortant  that  the 
checks  on  our  bank  or  "Home  Debits"— as  they  are  commonly  termed— should  be  listed  imme- 
diately and  charged  to  the  dealers'  accounts  without  unnecessary  delay  that  the  dealers'  balances 
may  be  known  at  any  moment. 

aj.  Deposits  from  Banks. — Deposits  from  banks,  bankers,  and  individuals  at  other  points 
sent  either  by  mail  or  express  properly  come  within  the  jurisdiction  of  the  receiving  teller,  and  have 
been  included  in  the  receiving  teller's  proof  for  this  set.  The  description  of  the  mail  and  its 
treatment  has,  however,  been  deferred  until  later,  that  the  student  may  keep  clear  in  mind  the 
simple  requirements  of  the  second  teller's  department. 

28*  The  Proof. — At  the  close  of  business  each  day,  when  the  receipts  have  been  received 
from  all  sources,  the  teller  prejiares  a  proof. 


FIRST    PERIOD. 


RECEIVING    TELLER'S    PROOF. 

Date 


1.    BILLS 

40370 

1. 

CREDITS.    A-L 

2.    COIN 

4.4-15 

86 

M-Z 

3.    CHECKS   ON    BANK 

258  14-4 

74 

2. 

"               Banks 

992041 

19 

•4.    EXCHANGES 

13735  I  7 

59 

3. 

THIRD  TELLER  (Coll.  Mall) 

186327 

33 

5.    CITY    OFFICE 

2034 

99 

4. 

FIRST   TELLER 

1817 

36 

6.    FOREIGN    OFFICE 

179633 

22 

5. 

EXCHANGE   ACCOUNT 

12 

52 

7.    FIRST  TELLER   (Special) 

75000 

i 
- 

The  credit  side  of  this  proof  consists  of: 

1.  Footing  of  de|X)sit  tickets. 

2.  Amounts  forwarded  by  banks  for  credit,  consisting  of  items  similar  to  those  deposited 
by  dealers. 

3.  Remittances  from  banks  in  payment  of  "foreign  office"  items  previously  sent  to  them 
for  collection. 

4.  Checks  and  drafts  on  other  banks  which  have  been  cashed  by  the  paying  teller. 

5.  When  checks  and  drafts  are  received  in  deposit  for  which  a  charge  is  made  for  collecting, 
the  amount  so  charged  is  deducted  from  the  deposit  ticket;  this  deduction  must  be  then  credited 
under  Exchange  account 

The  debit  side  represents  the  character  of  the  receipts  and  their  distribution  : 

I.     Gold  certificates,  legal-tender  notes.  National  bank  notes,  and  silver  certificates. 

Crold,  silver,  and  copper. 

Checks  on  our  bank  received  in  the  deposits  which  are  to  be  charged  to  dealers. 

Exchanges  to  be  sent  to  the  clearing-house  received  in  deposits  and  from  first  and  third 


2. 

3- 

4- 

tellers. 

5- 
6. 

7- 


Checks  and  drafts  on  private  bankers  not  payable  through  the  clearing-house. 
Checks  and  drafts  to  be  collected  from  out-of-town  banks. 

Coin  and  bills  transferred  to  the  paying  teller  during  the  day.     (Numbers  i  and  2  are 
transferred  at  the  emf  of  the  day.) 

[Additional  items  will  sometimes  be  necessary  on  the  credit  si<ie.  for  instance:  "city  office"  items  are  presumed  to  be 
immediately  collected  in  cash;  should  any  of  these  items  be  held  over,  for  any  reason,  the  amount  must  necessarily  be 

II 


BANK    BOOK-KEEPING 

credited  to  offset  the  previous  debit;  likewise,  should  any  of  the  exchanges  prove  irreguUr  in  end«r«meni  or  for  any  other 
cause  should  not  be  sent  to  the  clearing-house,  a  corresponding  credit  would  be  required. 

.K-  ,  ^"  '"^i"™;*"^'  ^"''-''-  "city  office  "and  foreign  office"  items  are  usually  induded  in  the  amount  charged  to  the 
third  teller;  the  distinction  is  largely  a  matter  of  phraseology,  but  it  is  well  for  the  student  to  be  familiar  with  these  terms 
as  ordinarily  used  in  large  banks. 

Provision  also  must  sometimes  be  made  for  "differences  ";  while  amounts  to  be  credited  or  charged  to  the  other  teller* 
will  depend  upon  circumstances.  Cashier's  checks  and  certified  checks  on  this  bank  received  in  the  deposits  may  be  charged 
to  the  third  teller  and  not  included  in  "Checks  on  Bank."]  »~  7  is~ 

After  first  classifying  the  deposit  tickets  from  the  following  memorandum  of  transactions  for 
the  first  period,  as  previously  explained  (25),  the  student  will  prepare  a  proof  on  paper,  supplying 
the  amounts  of  Credits  A-L  and  M-Z  from  his  own  work,  and  then  foot  the  columns  as  indicated 
m  the  form  illustrated. 

MEMORANDUM   OF   TRANSACTIONS. 
S9.     Rfst  Period. — October  2— Received  the  following  deposits,  as  per  tickets: 
J.  H.  Newman,  $1292.1 1 ...  .Cooper.  Hewitt  &  Co..  $64725.71    ...  Henry  Maillard.  $6310.89        Lord  & 
Taylor    $589.09...  A.  Iselin.  Jr..  $5481.75.  •• -New  York  Rubber  Co..  $10429.16. ..  .Otis   Brothers  &  Co 
$2239.98...  Denny    Poor   &   Co..   $5914.50.    .  .Elliot    L.   Butler.   $1950.25...  .J'.  Selwin   Tail.   $4599.40      " 
C.H.Pine.Prest     $470.55   ...William  Clark.  $26.0.55.    .  .H.  Mills.  Trcas..  $284.3.    ...  Andrew  McLean  & 
Co..  $8270.70        G.  W.  Adams.  $2842.17 ...  .Bulkley.  Dunton  &  Co..  $3.36.97  ...Pennsylvania   R.  R.  Co 
$24949  14.      .Chas.  H.  Baker,  $2694.57.  •    .Steinway  &  Sons.  $7861.30. . .  .H.  H.  Swasey.  $20979.81         G    g' 
Haven.  $.295.60. .  ..E.  R.  Durkee  &  Co..  $59368.45. . -Redmond,  Kerr  &  Co..  $25484.79-      Gilbert  Manul 
factunng  Co..  $924.50  .     Edward  King.  $967.55   • .  .Morton,  Bliss  &  Co.,  $.3890.60. . .  .Western  Electric  Co 
$84963... Geo.  C.  Flint  Co..  $6640.59.  •   .Knickerbocker  Trust  Co.,  $2.0790.64  .   .United  States  Leather 
Co..  $170950.37. 

30.  Second  Period.— iV^rw^^rr  /—(In  this  and  the  succeeding  periods  the  student  will 
not  prepare  a  proof,  but  will  list  the  names  of  depositors  as  in  the  first  period)— Received  the 
following  deposits,  as  per  tickets: 

Henry  Maillard.  $.2400.    .  .Lord  &  Taylor.  $.729'-83.  less  exchange.  $3.61  (exchange  will  be  de<lucted 
in  each  case  and  the  total  carried  to  the  credit  of  Exchange  account  from  the  general  credit  book)        J   H 
Newman.  $,62.38.     .C.  H.  Pine.  Prest..  $3.83.20. . .  .J.  Selwin  Tail.  $243998.  >ess  exchange.  64c        Elliot  L 
Butler.  $4572.90....  Denny.  Poor  &  Co..  $7840.26. ..   Otis   Brothers  &  Co..  $3741. 93.    .New  York  Rubber 
Co..  $.4036.20....  A.  Iselin.  Jr..  $557..84. . .  .G.  G.  Haven.  $.3170.09. ...  H.  H.  Swasey.   $.897.90        Penn- 
sylvania R.  R.  Co..  $36238.. 7. . .   Bulkley,  Dunton  &  Co..  $2700. . .  .G.  W.  Adams.  $.,940.21.  less  exchange 
$4.92  ••••  Andrew  McLean  &  Co..  $.7948.63 ....  H.  Mills,  Treas..  $9.45.  less  exchange.  $,.38         Willi.im 
Clark.  $65  50..  2  ...Western  Electric  Co..  $95600. ..  .Morton.  Bliss  &Co..  $39720.68. ..  .Edward  King  $43-.,  50 
...Gilbert   Manufacturing  Co..   $3.90.85..     Redmond.  Kerr  &  Co..   $38797.71 ...  .E.   R.   Durkee  &  Co 
$75400....  Knickerbocker  Trust  Co..  $2763450. .  2 ....  Geo.  C.  Flint  Co..  $.5748.25.    .  .United  .States  Leather 
Co..  $1.8637, .38....  John  L.  R.ker.  $17000. ..   Samuel  Sloan.  $35400. ..  .Cooper.  Hewitt  &  Co..  $78240.50 
Chas.  H.  Baker.  $6500.  less  exchange.  $7.36. . .  .Total  Exchange  credit.  $ 

31.  Thifd  'Ponod,— December  i — Received  the  following  deposits,  as  per  tickets : 
Pennsylvania  R.  R.  Co..  $35127.06.       H.  H.  Swasey.  $2908.01 . . .  .G.G.  Haven.  $.4281. .0. . . .  A.  Iselin  Jr 

$6682.95.  less  exchange.  $3.94... New  York   Rubber  Co..  $23,47.3. ..    .Otis  Brothers  &  Co..  $263082' 
Denny.  Poor  &  Co..  $8951.37. . .  .Elliot  L.  Butler.  $5683.0. ...  J.  Selwin  Tait.  $3328.87.  less  exchange    $,  2, 
....C.  H.  Pine.  Prest.,  $4294.31   .•  J- H.  Newman.  $750.29. ..  .Lord  &  Taylor.  $16.82.74.  less  exchange  $738 
. . .   Henry  Maillard.  $1,925.38.       Chas.  H.  Baker.  $5627.9, . . .  .Cooper.  Hewitt  &  Co.,  $67,39.49.       Union 
Mortgage  Co.,   $35000.   less   exchange,  $,4.30.  ..   VV.   F.  Wakeman.   $5740. ..  .United   States  Leather  Co. 
$,75260.27. . .  .Geo.  C.  Flint  Co..  $,6859.36. . .    Knickerbocker  Trust  Co.,  $252349.0, . . .  .E.  R.  Durkee  &  Co 
$76324. 1 8....  Redmond.  Kerr  &  Co..  $4.686.25. ..  .Gilbert   Manufacturing  Co..  $428.. 96. ..  .Edward    King 
$5432. 61...  Morton.  Bliss  &  Co.,  $4,200. ..  .Western  Electric  Co..  $872.8.39. ..  .William  Clark.  $7500..    ' 
H.   Mills,  Treas..  $.1260.  less  e.xchange,   $4.29. ...  Andrew   McLean   &  Co..   $25237.68 .... G.  W.  Adams 
$13800.29  ...Bulkley,  Dunton  &  Co..  $2,950.  less  exchange.   $2.39. ..  .Steinway  &  Sons,   $45000. ..  Tota! 
Exchange  credit.  < 

3a.    Fourth  Pexiod*— December  j/— Received  the  following  deposits,  as  per  tickets : 
Steinway  &  Sons.   $4.725.84 ....  Bulkley.    Dunton   &  Co..   $.9849.50    .     G.  W.   Adams.   $.7500.   less 
exchange.  $3.78. ..  Andrew  McUan  &  Co..  $3414879  •     H.  Mills.  Treas..  $5400.  less  exchange.  $4.9... 

U 


THE    SECOND    TELLER 

William  Clark.   $3.40 Western   Electric  Co..  $96129.45 Morton.  Bliss  &  Co..  $62798.75 Edward 

King.  $6243.72. . .  .Gilbert  Manufacturing  Co.,  $,5972., 8. . .  .Redmond,  Kerr  &  Co..  $25,00. . .  .E.  R.  Durkee 

&  Co..  $42728.95. ..   Knickerbocker  Trust  Co..   $27,000. ..  Geo.  C.  Flint  Co..  $24748.25 United   States 

Leather  Co..  $,8,750.25 W.  F.  Wakeman.  $3.27.40.  less  exchange.  $2.76. . .   Union  MortgageCo.,  $47238.20, 

less  exchange,  $.7.48  ...Cooper,  Hewitt  &  Co.,  $452  io.,2. ..  .Chas.  H.  Baker.  $2925.40.  less  exchange,  97c 

Henry  Maillard,  $,22,0.50 Lord  &  Taylor,   $2,758.76 J.  H.  Newman,  $2,60.54   ...C.  H.  Pine, 

Prest..  $2,00.  less  exchange.  $2.98. . .  .J.  Selwin  Tait,  $5725. .  .  .Elliot  L.  Butler.  $2,49.75 Denny.  Poor  & 

Co..  $,4708.9, Otis  Brothers  &  Co.,  $7945.90 New  York  Rubber  Co.,  $28500 A.  Iselin,  Jr.,  $,7620. 

less  exchange,  $7.55 G.  G.  Haven,  $35000 H.  H.  Swasey,  $1000 Pennsylvania  R.  R.  Co.,  $42140.07 

....Total  Exchange  credit,  $____ 


13 


f 


I 

I 
I 


CHAPTER    III. 
THE    FIRST   TELLER. 

33.  The  first  or  paying  teller  is  the  recognized  custodian  of  the  cash,  and  the  general 
disbursing  officer  of  the  bank.  The  incumbent  of  this  position  is  charged  with  more  resix,nsibility 
than  any  other  i>erson  in  the  bank  with  the  exception  of  the  officers. 

34.  Bank  Checks.— The  principal  part  of  the  first  teller's  duties  consists  in  paying  the  checks 
drawn  on  the  bank  by  dealers.  This  requires  unremitting  care  as  well  as  e.xjH-rience,  and  involves 
special  responsibility,  as  a  slight  oversight  or  neglect  may  result  in  great  loss. 

A  bank  check  is  an  order  of  a  dealer  on  a  bank  or  banker  for  the  payment  of  money. 
It  should  state  or  set  forth  several  important  facts  and  conditions: 


[gS 


o 

< 
u 


.^t^f^t^^Si^^^ 


FOR.\I    OF    BANK    CHECK. 

1.  It  Should  sijecify  the  amount  to  be  paid,  and  this  should  be  both  written  in  full  and 
expressed  in  figures  that  there  shall  be  no  mistake  or  misinterpretation  in  jxiying.  The  amount 
written  in  words  in  the  body  of  the  check,  however,  will  govern  in  case  the  sums  e.xpres.sed  by  the 
words  and  the  figures  do  not  correspond. 

2.  It  should  give  the  name  of  a  payee,  and  that  may  be  a  i>erson,  firm  or  concern,  or  title  of 
account,  or  si^ecify  some  purpose  or  object  of  payment. 

3.  It  should  be  signed. 

4-     It  should  state  if  payment  is  to  be  made  to  bearer  or  to  the  order  of  the  i)avec 

5.  It  should  be  dated.  '    ^     ' 

6.  It  should  be  addressed  to  the  bank  or  banker  on  whom  it  is  drawn. 

The  paying  teller's  chief  concern  is  to  pay  out  no  money  improperlv.  This  necessitates 
steadiness  of  nerve,  clear  judgment,  a  reliable  memory,  and  abilitv  to  read 'character.  One  test 
ot  his  efficiency  is  readiness  to  recognize  signatures  without  reference  to  the  signature-book  or 
card,  as  the  case  may  be.  He  must  keep  in  mind  new  signatures,  powers  of  attornev,  notices 
stopping  payment  of  checks,  drafts,  etc.,  and  his  knowledge  of  the  ,«rties  presenting  checks 
must  be  sure;  otherwise  he  should  require  identification.  To  prevent  overdrafts  he  must  be 
constantly  posted  as  to  the  average  balances  of  dealers.  In  case  of  doubt  he  will  at  once  refer 
to  the  balance-leilger  keeper  for  exact  information. 

In  paying  checks  presented  to  him  the  teller,  then,  considers  three  things:  first,  the  genuineness 
of  the  dealers  signature;  second,  the  identity  of  the  person  presenting  the  check;  and  third,  the 
condition  of  the  dealer's  account. 


THE    FIRST    TELLER 

35.  Certification.— An  inqiortant  function  of  the  first  teller's  department  is  the  certifying  of 
dealers'  checks.  In  many  lines  of  business,  particularly  that  of  brokers,  transactions  involving 
large  amounts  are  daily  accomplished  which  must  be  settled  upon  a  strictly  cash  basis.  To  be 
comi)elled  immediately  to  present  a  check  and  receive  in  payment  the  actual  money  would  subject 
the  payee  to  great  inconvenience  as  well  as  loss  of  time.  It  is  customary,  therefore,  for  either  the 
luyee  or  drawer  to  present  it  for  certification,  which  is  done  by  the  paying  teller  writing  or  stamping 
across  the  face  of  the  check  the  word  "Certified,"  "Good,"  or  "Good  when  properly  endorsed" 
or  some  customary  equivalent,  and  signing  his  name.  The  check  may  then  be  transferred  or 
deposited  by  the  payee  with  safety,  for  the  certifying  bank  becomes  responsible  for  the  amount 
certified.  This  certification,  however,  does  not  guarantee  the  endorsements  on  the  back  of 
the  check. 

The  paying  teller  preserves  a  record  of  checks  so  certified,  usually  in  a  book  prepared  for  this 
purpose,  from  which  the  dealer  is  immediately  charged  in  the  balance  ledger.  A  form  which  is 
used  for  this  purjKjse  is  here  presented: 

NEW    YORK,    SEPTEMBER    29,    1897. 


Dealers 

A-L 

M-Z 

When  Paid 

Amount 

WESTERN    ELECTRIC    CO. 

97500 

Sep.     30 

97500 

BULKLEV,    DUNTON    &   CO. 

14281 

63 

1 
Oct.  1  14. 

14281 

63 

JAMES   G.   CANNON 

1     65000 

Sep. 

30 

65000 

MORTON,    BLrSS  &   CO. 

7482 

97 

Oct. 

21 

7482 

97 

H.    H.    SWASEY 

85973 

84 

Sep. 

SO 

85973 

84 

In  large  banks  where  such  accounts  are  active,  several  checks  being  certified  for  the  same 
dealer  daily,  the  teller  usually  writes  the  names  of  such  dealers  in  this  book  before  the  bank  opens 
leaving  after  each  name  such  a  number  of  blank  lines  as  he  presumes  will  be  required  during  the 
day.  As  the  checks  are  certified  he  enters  the  name  of  the  dealer  in  this  book,  followed  usually  by 
the  number  of  the  check,  and  extends  the  amount  in  the  proper  column.  The  other  columns  are 
used  when  the  check  has  been  returned  to  the  bank,  either  over  the  tellers'  counters  or  from  the 
clearing-house,  the  amount  being  generally  written  in  red  ink.  This  is  done  primarily  for  the 
purpose  of  comparing  the  amount  of  the  check  when  returned  with  the  amount  when  i.ssued,  for  ,f  it 
nas  been  raised  -that  is,  changed  to  a  higher  amount  than  was  originally  written-it  can  be 
returned  before  closing  hours  and  thus  prevent  the  loss  by  the  bank.  This  record  is  also  convenient 
in  determining  at  any  time  what  certified  checks  are  outstanding. 
in  the taT'  ^''"'''  ^'^  Prohibited  from  certifying  checks  beyond  the  amount  which  a  dealer  has 

Notes  and  drafts  of  dealers,  payable  at  our  bank,  are  also  certified  same  as  checks,  no  distinction 
being  necessarily  made  in  the  certification-book  as  to  the  character  of  the  paper  certified.     In  fact 

returned  through  the  clearing-house  the  same  as  checks. 

3^  CanceUation.-Checks  and  drafts  paid  by  the  bank  are  usually  canceled  by  being  thrust 
u,>on  spindles  which  puncture  and  disfigure  the  paper.  Different  devices  are  used  in  different 
^'TT^'  '^^  "^^'"^  ^"''  character  of  the  puncture  may  indicate  through  which  department 

nr!J  ;  H  '*'^'  received;  it  being  important  to  know  whether  a  check  was  paid  by  the  paving  teller 
presented  over  the  counters  of  the  receiving  teller  or  note  teller,  or  received  from  the  clearing-house. 

Ik.c  ?7'  f^  ""^  ^^^  Checks.-The  paying  teller  keeps  a  book  in  which  he  or  his  assistant 
chick.  "^"'''^^'  f'^''  f'''  ^'^^^  '"'^'^l^  «^  the  drawer  or  endorser,  keeping  separate  columns  for 
checks  on  our  bank  and   those  on  other  banks.     This  is  desirable  for  two  reasons:    first,  that 

15 


I 


BANK    BOOK-KEEPING 

reference  may  be  readily  made  at  any  future  time;  and  second,  that  the  teller  may  easily  check 
his  work  in  case  of  a  difference. 

38.    The  Proof. — The  paying  teller's  prtiof  shows  the  character  and  condition  of  the  cash  on 

hand,  and  the  receipts  and  disbursements  during  the  day. 


FIRST    PERIOD. 


PAYING    TELLER'S    PROOF. 

Date 


I.  Cash 

2503341 

1 

»3 

I. 

National  Bank  Notes 

2.  Second  Teller 

138466 

86 

Gold  Coin 

560000 

3.  Third  Teller 

2666 

03 

Gokl  Trrasnry  CertiBcates 

8670 

4.  Second  Teller  Special 

75000 

Gold  C.  n.  Certificates 

1230000 

5.  Balance  from  Clearing  House 

I2CX)7 

38 

Silver  Dollars 
Silver  Certificates 
Subsidiary  Silver  Coin 
Minor  Coin 

1487 

71500 

6316 

544 

90 
60 

- 

Legal  Tender  Notes 

U.  S.  Certificates  of  Deposit 

472685 

IIOOUU 

2. 

Treasury  Notes 
Checks  on  Bank 

105000 

35661 13 

65 

3- 

Second  Teller's  Items 

I8I7 

36 

4. 

Third  Teller's  Items 

76426 

02 

5. 

Balance  to  Clearing  House 

_.     _ 

The  items  on  the  debit  side  of  this  proof  may  be  explained  as  follows : 

1.  Balance  of  cash  on  hand  at  the  close  of  the  previous  day's  business,  as  shown  by  his  proof 
for  that  day. 

2.  Amount  of  bills  and  coin  received  from  the  second  teller  at  the  end  of  the  previous  day's 
business. 

3.  Cash  transferred  from  the  note  teller  which  he  has  received  in  payment  of  "city  office"  and 
"cash"  items  of  the  previous  day.  (The  sum  of  these  three  amounts  equals  the  cash  held  by  the 
paying  teller  at  the  close  of  October  i,  as  shown  in  Statement  96.) 

4.  Cash  transferred  from  the  second  teller  at  different  times  during  the  day. 

5.  Cash  received  from  the  clearing-house  when  the  exchanges  sent  are  more  than  those 
received.     (Total  exchanges  sent,  in  this  instance,  $2,015,509.45.     Received,  $1,999,502.07.) 

The  items  on  the  credit  side  consist  of: 

1.  Divisions  of  currency  as  the  titles  indicate.  Clearing-house  certificates  and  U.  S.  certificates 
of  deposit  cannot  be  used  in  payment  over  the  counters,  but  are  restricted  to  settlements  at  the 
clearing-house  or  between  clearing-house  banks. 

2.  Checks  on  our  bank  paid  during  the  day,  which  are  to  be  charged  to  dealers. 

3.  Checks  on  other  banks  paid  during  the  day,  which  are  to  be  collected. 

4.  Cashier's  checks,  certified  checks  on  our  bank,  cashier's  charge  tickets,  and  city  office  items. 

5.  Cash  paid  to  the  clearing-house  when  the  exchanges  sent  are  less  than  those  received. 

[.\dditionaI  items  may  be  added  to  either  side  to  preserve  an  equalization  of  receipts  and  disbursements;  for  instance, 

U.  S.  Treasurer,  Cashier  Account,  Cash  Items.  E.xchange  Teller,  etc.,  while  some  banks  make  a  provision  in  the  proof  for 

"  Overs  and  Shorts."     It  not  unfrequently  happens  in  balancing  the  cash  at  the  end  of  the  day  that  there  will  be  a  small 

•amount  short,  or  a  small  amount  over.     An  account  is  usually  kept  in  the  general  ledger  with  "Tellers'  Differences" 

16 


THE    FIRST    TELLER 

to  which  over  and  short  amounts  are  carried,  and  when  such  errors  have  been  located  the  corresponding  debit  or 
credit  is  made.  Krrors  of  this  character  generally  arise  from  the  pressure  incidental  to  rapid  work.  That  troublesome 
quantity  familiarly  known  to  bank  clerks  as  the  "difference"  is,  perhaps,  more  frequently  traceable  to  illegible  figures  than 
to  any  other  source.] 

In  this  set  the  student  will  prejMire  a  list  on  \mper  of  the  paitl  checks  of  dealers  in  the  same 
manner  as  required  in  receiving  teller's  work  (25),  and  enter  the  certified  checks  in  the  certi- 
fication-b«>ok  as  previously  explained  (35),  He  will  also  prepare  a  proof  supplying  the  amount 
of  "Checks  on  Bank  "  from  his  own  work. 

MEMORANDUM   OF   TRANSACTIONS. 

^9*     First  Period. —  Oitobtr  .?— Paid  checks  of  dealers  as  loUovvs:     Redmond,  Kerr  &  Co.,  $1000 

Knickerbocker  Trust  Co... $45.90.  $1654.10,  $500.  $22965.15 G.  W.  Adams,  $758.13   ...Western  Electric 

Co.,   $2259.79 Edward   King.    $36.60 J.  H.  Newman,  $849.25 Geo.  C.  Flint  Co.,  $3500 Elliot  L. 

Butler.  $6.45 United  States  Leather  Co.,  $1300,  $7500 Cot)|K;r.  Hewitt  &  Co.,  $44750. 

Certified*  the   following  checks:    Ch;is.    H.   IJaker.   $1975.50 Morton.   ISiiss  &   Co..   $2471.87.   $29000, 

$380.06.    $9989. 19.... Gilbert    Manufacturing   Co..    $47>-95 A-    Iselin.    Jr.,    $1500 Slcinway   &   .Sons, 

5362545    ...Knickcrlwcker  Trust  Co.,   $74'-5o.   5346o,   $83409.97 United  States  Leather  Co.,  $15610.50, 

$10000,  $2400,  $60000. 

40.     Second  Period. — Xovcmbcr  /—Paid   cliecks  of  dealers  as   follows:    Lord   &   Taylor,   $181.40, 

$21.63.  $328.92...  Kni«:kcrl)ocker  Trust  Co.,  $178.36,   $19450.   $428.78 Andrew  McLean  &  Co.,  $371.62, 

$7319.  $1 292.68....  Uenny,  Poor  &  Co.,  $18.93.  $3712.50.  $191.98,  $37.42  ...  W.  F.  Wakeman,  $95.75.... 
United  Slates  Leather  Co.,  $700,  $8900.72. ..  .G.  W.  Adams.  $175.28,  $500,  $362.12. ..  .E.  R.  Durkcc  &  Co.. 
$47.92.  $25.  $452.65.  $326.98  . . .  New  York  Rubber  Co.,  $4700.  $37.20,  $195.42 ....  Morton.  Dliss  &  Co..  $26000 
....Redmond,   Kerr  &  Co..  $91.40,  $3500.  $426.54. 

Certified  the  following  checks:  J.  11.  Newman.  $44-90. . .  .G.  G.  Haven.  $7000.  .  .  .United  States  Leather 
Co.,  $1950.  $45475.  $7360.21.  $17840.26  ...Knickerbocker  Trust  Co..  $12.73,  $96782.  $36950.  $44760.29.... 
John  L.  Riker.  $400,  $11500. ..  .Redmond,  Kerr  &  Co..  $37.28,  $460.45,  $3174.28,  $25278.45. ..  .Cooper, 
Hewitt  &  Co..  $22600,  $61.25.  S376.98.  $4978.25. . .  .Bulklcy,  Uunton  &  Co.,  $72800. 

4-'«      Third  Period. — December  /—Paid  checks  of  dealers  as  follows:    G.  G.   Haven,    $1275.80 

Lord   &   Taylor.   $4278.40.  ...  Knickerbocker  Trust  Co..   $45.76.    $31975.    $1278.64.    $138.29. ...  Pennsylvania 

R.  R.  Co..  $4500 Redmond.  Kerr  &  Co..  $47.38.  $2700.  .  .    Andrew  McLean  &  Co..  $137.28,  $478.47,  $39.26, 

$37«-29. . .  .Denny,  Poor  &  Co.,  $495.80.  $2750.  $63.18. . .  .Edward  King.  $4700,  $31.26.  $161.75. .  •  -New  York 
Rubber  Co..  $34725,  $278.45.  $72.69.  $4100. 

Certified  the  following  checks:    Samuel  Sloan.  $4718.26 Chas.  H.  IJaker.  $425.92. ...  Union  Mortgage 

Co..  $37.98.  $4875.  $5000.... A.  Iselin,  Jr..  $2574.63,   $1600. ..  .United  States  Leather  Co..   $71950.  $4i7.2'5, 
$5792.18.    . .  KnickerlK)cker  Trust  Co..  $8500.  $437-5o,  $16925.40.  $19633.67.  .  .  .W.  F.  Wakeman.  $1238.75.  . 
Western  Electric  Co.,  $45000. 

4a»  Fourth  Period. — December  ji—VmA  checks  of  dealers  as  follows:  liulkley,  Dunton  &  Co.. 
$2340.25....  Andrew  McLean  &  Co..  $173-34.  $132.67,  $3000.  .  .  .  Unite.l  States  Leather  Co.,  $7500,  $1433.08 
....Cooper,  Hewitt  &  Co..  $840.  $73-91.  $780.98. ...  New  York  Rul)i)er  Co..  $1351.12,  $95.40.  $570.20.... 
Lord  &  Taylor.  $7500.    .  .Geo.  C.  Flint  Co..  $2190.  $312.45    -  .  .Denny.  Poor  &  Co..  $61.43.  $1725.40,  $3582.29. 

Certified  the  following  checks:  J.  Selwin  Tait.  $475,  $3165.12  ...Elliot  L.  IJuikr.  $72.15.  $147.32.... 
G.  G.  Haven,  $45150.  ..  .Morton.  IJliss  &  Co..  $13451.  $15382.  $17124.  ...  Redmond.  Kerr  &  Co..  $15000 
$92.73   .  ■  .E.  R.  Durkee  &  Co..  $12300.  $9463.25 . . .  .C.  H.  Pine.  Prest.,  $3000. 

•  Leave  fifieeu  liue»  lu  CerUlicaiiuu  Uook  lor  uuiouuMtrng  checks  which  were  certified  previous  to  October  2  <sce  first  i«ragraph.  page  56). 


■17 


CHAPTER    IV. 
THE    DISCOUNT    CLERK. 

43,  National  banks  are  permitted  by  law  to  lend  75  per  cent,  of  their  deposits.  This  fund, 
together  with  that  portion  of  its  capital  stock  and  surplus  which  has  not  been  used  in  purchasing 
stocks  and  bonds,  constitutes  the  bank's  chief  working  capital.  The  loan  department  is,  therefore, 
the  principal  force  in  the  dividend-earning  machinery  of  a  bank,  and  from  this  fact  will  be  seen  the 
desirability  of  securing  a  long  line  of  deposits  which  can  be  immediately  converted  into  means  of 
making  profitable  loans.  Notes  are  seldom  discounted  for  a  longer  period  than  four  months. 
Loans  for  a  longer  time  than  this  would  tend  to  impair  the  convertibility  of  the  banks  resources 
and  thus  prevent  that  perfect  command  over  its  funds  which  is  compatible  with  security  in  times  of 
sudden  stringency  in  financial  circles. 

The  proixjsition  for  a  loan  is  usually  submitted  to  the  cashier,  by  whom  a  memorandum  is 
made  stating  the  particulars.  He  presents  the  matter  to  the  Board  of  Directors  at  their  regular 
meeting,  the  proposition  being  accompanied  by  the  paper  offered,  and  the  security,  or  a  description 
of  it,  if  any  is  proposed. 

44.  The  Offering  Book.— In  some  instances  such  propositions  are  first  submitted  to  the 
discount  clerk,  who  records  the  most  imjxjrtant  information  concerning  the  |)a|)er  in  an  "offering- 
book."  This  information  generally  includes  the  names  of  the  maker,  jjayee  and  endorser  of  the 
paper;  the  nature  of  the  collateral  security,  if  any;  time  for  which  the  \vx\)tr  is  to  run;  and  a 
memorandum  showing  the  state  of  the  offerer's  account— if  a  dealer  of  the  bank— particularly 
specifying  the  quantity  of  his  paper  already  under  discount  and  the  average  amount  of  his  daily 
balance.  Other  things  being  equal,  this  will  form  the  basis  of  discrimination  on  the  part  of  the 
directors  as  to  their  acceptance  or  rejection  of  the  proposition. 

^^  The  Discount  Register.— .\fter  the  offered  paper  has  been  submitted  to  the  officers  or 
directors  and  they  have  passed  upon  it,  it  is  handed  over  to  the  discount  clerk.  Paper  rejected 
or  declined  he  returns  to  the  owners,  and  that  accepted  he  records  in  the  "discount  register." 
Each  bill  as  entered  is  given  a  consecutive  number,  which  is  written  upon  the  back,  usually  in  red 
ink.  This  number  preserves  a  distinct  individuality  for  each  paper  and  prevents  errors  which 
might  easily  occur  without  it. 

When  the  owner  of  the  accepted  offering  is  a  dealer,  the  discount  clerk  authorizes  the  proceeds 
of  the  loan  to  be  placed  to  the  credit  of  the  dealer's  account.  The  usual  authority  for  this  credit 
consists  of  a  "  ticket"  made  out  by  the  discount  clerk  ami  handed  to  the  bookkeeper.  'I'he  entries 
may,  however,  be  taken  by  the  bookkeeixjr  direct  from  the  discount  register,  columns  being 
provided  therein  for  classifying  the  credits  according  to  the  dealers'  ledgers.  Where  several  items 
are  to  be  credited  to  the  same  party,  a  ticket  is  generally  made  out  for  each  item,  that  the  amount 


FORM    OF 

Dat< 

For  Whom  Diacounted 

Maker  or  Payer 

Bndoraer 

Numbar 

1897 
Sep. 

, 

I).  0.  UnderhiU 

Walter  L.  Bnrcketl 

Jamr*  <"..  Canmm 

t4fal 

Morton,  Rlis»  A  Co. 

Char  H.  Pattenon 

Win.  H.  Porter 

t 

Cashier  Account 

linatoii  Dry  Goods  Co 

Kidder.  Peabody  *  Co. 

3 

H.  H.  SwaMy 

Chase  Ekvator  Co. 

Lyman  J.  Gaf« 

4 

18 


■■■.i«*;.4«Ui:.^lifcfe 


L^AjIU'    llii'lllllllirf^    II JL.  . 


'Sk.  !ajii>  '^i^lLflPirJKMMiL' jj    ''' 


THE    DISCOUNT    CLERK 

of  each  may  ap|x:ar  separately  under  the  dealer's  account,  if  the  loan  were  made  to  a  j>erson  not 
a  dealer,  "Cashier  Account"  would  be  written  in  the  "For  whom  discounted"  column  of  the 
discount  register  and  a  cashier's  check  issued  for  the  proceeds. 

The  student  will  not  make  the  entries  in  the  general  debit  and  credit  books  until  the  work  of 
the  general  bookkeeper  is  given. 


$7352.69. 

Charge 
Credit 


New  York,  September  2,   1897. 


BILLS   DISCOUNTED. 

Morton,  Bliss  &  Co. 

Discount 

Exchange 


$7^90-93 

J53't^ 

8.58- 


WILLIAM  M.  BUSHNELL, 

Discount  Clerk. 


FORM    OF    CHARGE    TICKET. 

46.  The  Discount  Tickler.— As  soon  as  a  note  becomes  the  proi^erty  of  the  bank  and  has 
been  entered  in  the  register,  the  due  date  is  written  across  its  face,  usually  in  blue  pencil,  and  it  is 
then  recorded  in  the  "iliscount  tickler."  This  book  is  ruled  in  sections  for  each  day  in  the  year 
with  the  day  and  date  printed  or  written  at  the  top  of  each  section,  the  left-hand  page  being 
generally  used  for  city  items  and  the  right-hand  page  for  out-of-town  items.  "  ricklerizing" 
consists  in  transferring  the  items  from  the  register  to  the  tickler.  After  being  ticklerized  the 
notes  are  carefully  checked  back  from  the  ticklers. 

The  discount  clerk  must  be  familiar  with  the  holiday  and  grace  laws  of  the  several  States,  and 
the  dates  of  maturity  must  be  carefully  determined.  These  computations  are  generally  verified  by 
two  or  more  persons.  The  footing  of  the  ticklers  up  to  the  close  of  business,  addetl  to  the  amount 
of  "past  due"  paper,  must  equal  the  balance  to  the  debit  of  "Hills  Discounted"  in  the  general 
ledger.  The  notes  are  next  filed  away  in  pocket-books  having  compartments  for  each  day  in 
the  month. 

The  "Remarks"  column  of  the  tickler  is  used  in  noting  the  facts  in  case  of  ncm-payment  or 
other  irregularities.  Payments  are  indicated  by  drawing  a  blue  pencil  line  through  the  amount, 
followed,  when  required,  by  the  clearing-house  number  of  the  check  which  has  been  received  in 
payment. 


DISCOUNT    REGISTER. 


Dated 

Where  Payable 

When 
Due 

Amount 

Discount 

]                  II         ■     — ! 1 

Exchange      Proceeds       S 

Date 

Time 

No. 

U 

1 

1 

1 

5 

60 

Days 

0 

New  York 

Fourth  National 

Oct. 

'5 

25460 

15a 

OS 

25307 

V5 

Aug. 

(6 

43 

v' 

** 

Kansas  City,  Mo. 

Jan. 

5 

73S» 

69 

•S3 

18 

8 

58' 

7iqo 

■*3 

6 

Sep. 

2 

4  mo.^ 

125 

y/ 

RoMon 

Huston,  iBt  Nat. 

Nov. 

afi 

150000 

"M3 

75 

■oo  i 

148306 

25 

4» 

Auk. 

28 

9o4 

8s 

y/ 

Chicago 

New  York 

Oct. 

J« 

14708 

18 

■44 

63 

-J 

•4563 

55 

68 

1 

6 

July 

3« 

3  mo. 

59 

•J 

»<)75» 

87 

1043  1  61  1 

'         1 

108 

58 

i>>53<« 

19 


r  II  .^ 


t 


BANK    BOOK-KEEPING 


SATURDAY,    OCTOBER    2,    1897. 


No. 

Maker 

Discounter 

Amount 

Remarka 

11400 

J.  W.  O'Neill 

J.  H.  Newman 

6oc» 

Protested  $1.85.     Chgd.  Newman 

12610 

Milmine,  Bodnian  &  Co, 

G.  VV.  Adams 

14760 

37 

—61 

1 1 562 

Hatch  &  Co. 

Morton,  Bliss  &  Co. 

55000 

— Ca.sh 

13111 

Ciilbert  Manufacturing  Co. 

E.  R.  I>urkee  &  Co. 

42760 

18      Chgd.  to  Maker 

"745 

Metropolitan  I>ank,  liuffalo 

Samuel  Sloan 

lououo 

-85 

13120 

Union   Trust  Co. 

Mutual  Life  Ins.  Co. 

175325 

92      Certified — S4 

13792 

Hoatmen's  Bank,  St.  Louis 

Vermilye  Jk  Co. 

89140 

Chgd.  Boatmen's  Itank 

14113 

Thomas  Hill 

Thomas  Hill 

I5UO 

I'rofit  and  Loss 

"3W 

1st  National,  Chicago 

James  Cj.  Cannon 

30000 

Certified— 8 

14293 

Koch  &  Co. 

Calhoun,  Kobbins  &  Co. 

75735 

Certified — 40 

14354 

Morton,  Bliss  &  Co. 

Knickerbocker  Trust  Co, 

18235 

50 

Chgd.  to  Morton.  Bliss  &  Co. 

FORM    OF    DISCOUNT    TICKLER. 

47.  Exchange. — Exchange  is  sometimes  charged  on  discounted  paper  payable  out  of  town. 
This  jjractice  is  arbitrary,  however,  depending  upon  the  size  of  the  dealer's  account  and  other 
considerations;  but  when  charged,  it  is  usually  based  upon  the  amount  of  time  to  elapse  before 
the  funds  are  received.  The  customary  charge  is  equivalent  to  the  interest  upon  the  amount  for 
the  required  time.  In  cases  where  correspondents  remit  on  regular  days  of  the  week  a  longer 
time  would  be  estimated  than  would  ordinarily  be  required.  For  instance,  if  the  item  were 
collected  on  Monday  and  the  regular  remittance  day  of  the  correspondent  was  Thursday,  three 
e.\tra  days  would  be  added.  The  number  of  days  estimated  may  be  written  in  the  discount 
register  to  the  right  and  above  the  "time"  for  which  the  paper  was  given. 

48.  Time  and  Demand  Loans. —  The  foregoing  remarks  have  reference  to  that  kind  of 
paper  known  as  "bills  discounted"  which  has  been  discounted  for  dealers  or  purchased  by  the 
bank  from  note  brokers  or  private  bankers,— the  interest  for  the  unexpired  time  l>eing  deducted 
from  the  amount  of  the  paper  at  the  time  the  loan  is  made.  Closely  connected  with  the  work  of 
the  discount  clerk,  though  not  necessarily  a  part  of  it,  is  that  of  the  loan  clerk  who  has  charge 
of  the  two  classes  of  loans  technically  known  as  "time"  and  "demand"  loans. 

Time  and  demand  loans  differ  from  bills  discounted  principally  from  the  fact  that  they  are 
made  upon  deposits  of  stocks,  bonds,  warehouse  receipts,  etc.,  rather  than  upon  the  financial 
standing  or  responsibility  of  the  borrower. 

Time  loans  are  made  payable  at  a  specified  date  and  the  note  is  drawn  to  include  the  interest 
upon  the  sum  actually  loaned. 

Demand  or  "call"  loans,  as  the  terms  imply,  are  made  payable  with  interest  whenever 
demanded  by  the  bank,— the  note  being  drawn  for  the  exact  sum  loaned. 

Demand  loans  arise  largely  from  the  fluctuations  of  balances  among  brokers.  Many  brokers 
do  business  on  narrow  margins,  borrowing  money  upon  a  given  set  of  securities.  These  securities 
are  taken  to  the  bank  by  the  broker  and  "  put  up  "  as  collateral  for  a  loan  which  may  be  called  in 
at  any  time  desired  by  the  bank.  It  is  the  business  of  the  loan  clerk  to  scrutinize  the  securities 
as  presented,  and  to  watch  the  drift  of  the  market  quotations,  that  the  value  of  the  stocks  and 
bonds  so  held  shall  not  fall  below  the  amount  which  the  bank  has  loaned,  which  is  usually  from 
70  to  80  per  cent,  of  the  value  of  the  securities.  Under  ordinary  financial  conditions  demand 
loans  draw  a  low  rate  of  interest,  but  the  rate  steadily  rises  as  the  mobility  of  money  becomes 
restricted  or  uncertain. 

au 


THE    DISCOUNT    CLERK 

49*  Loan  Tickets. — The  loan  clerk  prepares  a  charge  ticket  at  the  time  the  loan  is  made, 
specifymg  if  the  sum  is  to  be  placed  to  the  dealer's  credit— when  made  to  a  dealer— t)r  if  payment 
is  to  be  made  by  cashier's  check.  These  tickets  should  be  signed  by  the  loan  clerk  and  counter- 
signed by  the  cashier,  before  the  entries  are  made  in  the  general  debit  and  credit  books.  The 
detailed  record  of  time  and  demand  loans  may  be  kept  in  books  in  which  the  particulars  are  fully 
stated,  including  a  description  of  the  collateral,  and  which  may  be  ruled  off  as  the  loans  are  paid; 
but  a  special  form  for  this  purpose  will  be  presented  hereafter. 


National  Union  Banic 


New  York. 


Credit 


Charge  Time  Loan  No.  /^a^6 


(^44.^.^-*^^.^/^ 


/6y3^dy 


J 


FORM    OF    CHARGE    TICKET    (l.OANS). 

When  time  and  demand  loans  are  paid  the  loan  clerk  issues  a  credit  ticket  from  which  the 
general  bookkeeper  makes  the  proper  entries  in  the  general  credit  book: 


New  York,  August  jr,   1897. 


Credit 


Demand  Loans     \  iio^  James  G.  Cannon 

Interest 
Time  Loans  11125  William  H.  Rogers 

%  iijo  Kissam,  Whitney  &  Co. 


lOOOO 

35857 

41900 


87775 


92 
50 


42 


FORM    OF    CREDIT    TICKET. 

SO.  Collateral  Securities.— The  condition  of  the  collateral  of  a  bank  is  an  index  of  its 
general  management.  These  securities  should  be  systematically  arranged  in  envelopes,  alpha- 
l)etically  sorted,  and  placed  in  boxes  that  they  may  be  in  readiness  at  any  time  for  examination, 
or  final  delivery  to  the  borrowers.  Frequent  changes  of  collateral  are  quite  likely  to  take  place] 
but  at  no  time  should  such  securities  be  delivered  to  the  owner  without  a  receipt  being  taken  by 
the  loan  clerk  or  cashier. 

5I«  Collection  of  Bills  Discounted.— Discounted  paper  pavable  at  distant  points  is  handed 
to   the  collection   clerk   a   reasonable   time   before   it   is    due,    that   it    may   be   forwarded    for 

at 


f 


I 


I 


BANK    BOOK-KEEPING 

collection.  Such  paper  should  be  in  the  hands  of  the  correspondent  at  least  a  week  or  ten  days 
before  due  ready  for  notice  or  presentment  to  the  payer.  The  correspondent  is  charged  with 
the  face  of  the  paper  at  the  date  of  its  maturity. 

Notes  due  in  the  city  are  handed  t..  the  note  teller  for  collection,  usually  the  day  before  thev 
are  due.  If  not  paid  by  three  o'clock  of  the  maturing  day,  they  are  given  to  the  notary  for 
protest.  I  he  protest  must  be  executed  the  same  day  that  the  n«.te  is  due,  though  the  notices  of 
non-payment  to  the  endorsers  need  not  be  sent  until  the  following  morning. 

5*.     Rate  of  Discotmt.-Unless    otherwise    indicated,    discount  will    be   computed    in   the 
following  mem.,ramh.m  of  transactions  at  the  rate  of  six  per  cent. ;   and  for  the  sake  of  uniformity 
exchange  w.ll  be  charged  in  all  cases  for  the  expressed  time  at  the  rate  of  six  per  cent,  per  annum] 
Daysof  grace  will  be  allowed  on  such  items  as  .specified  only.  • 

The  student  will  enter  these  transactions  in  the  discount  register  and  discount  tickler  a.s 
explamed  beg.nmng  the  numbering  with  15,60.  City  items  may  be  placed  upon  the  left-hand 
page  of  the  t.ckler,  and  foreign  items  upon  the  right;  a  single  pair  of  pages  will  thus  serve  for  a 
month,  al  owmg  such  space  for  the  foreign  items  of  each  date  as  is  indicated  on  the  cover  of  the 
■ckler.  In  the  following  memorandum  of  transactions,  if  the  paper  contains  no  other  endorsement 
than  that  of  the  owner,  the  endorser  is  not  specified. 

MEMORANDUM  OF  TRANSACTIONS. 

*       5^*     First  Period.— Or/<)*^r  .?-Offerings  were  accepted  from  tlie  following  dealers :  CA^s  H  Rikfr- 
« .5.60.  note  for  $.435  datecl  at  New  York.  Aug.  3.  nt  90  days,  signed  G.  G.  Haven,  en.lorsed  by  J.^es  G 
CT^c^t\''^'I  ^'--^'--l  «ank.  ^,y....Rc,imon.i,  A'^r  ^  a.-«,s,6,,  H.  E.  Hutchinson's  note 

tor  $,5000.  dated  Aug.  ,.  at  4  months,  payable  at  Syracuse.  N.  Y.;  exchange  2  days  .      W  F  Wakeman 
t  .5.6..  h,s  draft  dated  Sep.  ..  at  60  days  from  date,  for  $6472.50.  on  N.  W.  flarris  &  Co.   pav.ble^  C^^Tcag;^ 
exchange  3  days^  . .  AVest.rn  Electric  G..-;t  ,5.63.  their  note  at  90  days  from  this  date  fo^ $25000    n   avor  oi 
an.payable  at  the  Nafonal  Union  Bank,  rate  5  percent. . .   SUin^ay  L  S.„s-^  ,5,64.  note  f^S  W  da  ed 

Bo^rias?"'  ?'■  ''  ^' ,'  ""T'-  ^'^"^"  ''  ''''"•  ^-  "°^''"'  '^^^^"^'^  -  ^-'-*'  Bank  of^ReTrnpt  In 
Boston.  Mass.;  exchange  4  days,  chscount  rate  4'4  per  cent. . .  .4n./rew  McUan  &-  G»._«  ,5,65  6o-d.iv  note 

for  $,474..6o  dated  at  Chicago.  Sep.  3.  payable  at  Bank  of  California.  San  Francisco,  s^d  J.  V    plrwe,! 

Co..  endorsed  by  Cornehus  N.  Bliss;  e.xchange  8  days. . .  .f///./  Z.  ^«//«r_jj  ,5,66.  draft  for  $,6000  datid 

StTout'exchT  "?''';"  ^<-^:i'"  nry  Goods  Co..  accepted  Aug.  39.  payable  at  Boafmt::^' B  l 
St.  Lou.s.  exchange  4  days  (grace).  Also.  J  ,5.67.  note  dated  Aug.  38.  at  4  months,  for  $493306.  signed  by 
Taylor  &  Galpm.  payable  at  Atlanta.  Ga..  endorsed  by  James  W.  English  (grace). . . .«  .5.^  Cash  er's  check 

Natifnal"  Hnl^n  u  t~^  '1'^;  "°'^^  '"''  '''°'"  '^'''  "''^^^  ^°'"  ^^3.06.  signed  by  G.  W.  Adams,  payable  a 
Na  ,ona   Union  Bank         Bu/k/ey,  Dunton  Sr-  Co.-^  ,5,70.  their  note  at  60  days  from  this  date  for  $.44908  98 

!J^/r;  ri  •?",^"^^«^'^"  "T---^  C-  '-^  f--  of  and  payable  at  National  Union  Bank,  rate  5  per  tt^"^* 
K  p  .  n  *^'^7,''  "°''  ^'  90  days  from  date,  his  favor  for  $450.  signed  by  A.  S.  Frisid.  endorsed 
Sen  r't?"'  "r  '  rZI'^'  ^'^""^  Bank....>^„  Z.  I^,^Jtrr-t^S^l  note  dated  at  Boston.  Masi' 
Sep.  25.  at  4  months,  for  $,600.  signed  by  C.  E.  Stevens,  payable  at  Hartford.  Conn.;  exchange  3  days 

wTtk  '  1  fu^'P'  "°''  ^^'"^  ^"^-  '^-  ^'  ^^•'''^''-  T'"'''*'  «»  4  •"«>"»»'».  fo'  578900.  signed  by 
UH.  Thomas,  endorsed  by  Sunset  Compress  Co..  payable  at  City  National  Bank.  Houston;  eXnge  7  .Ia>7 

rate  4^  per  cent.  («race  •       CsAier  Account-^  .5.74.  note  at  30  days  from   this  date  for  $.2500.  Signed  by 

H-O  Company,  endorsed  by  Samuel  Sloan,  payable  at  Kountze  Bros..  New  York,  rate  J  %  per  cent. 

nnmhTr  i"'"  r^  cliscounted  should  appear  upon  the  discount  tickler,  payable  in  this  city  to-day.  the 

S^c.oi  «  .!^  r'lK  "'T  *  ^°-  ^'-  ^''-  '^''^'"^-  5'+76o.37  . .  .j{  ,,563.  Hatch  &  Co..  Morton.  Bliss  & 
B^nk   bXio'sI.      '«;i  c   '^'"'""^"^'"""S  C°-  ^-  ^   Hurkee  &  Co..  $42760.8. ...»  ,,745.  MetroHitan 

Bank.  B,  ffalo.  Samuel  Sloan.  $,00000. . .  .J  ,3,30.  Union  Trust  Co..  Mutual  Life  Insurance  Co..  $,75335  92 

M.Hnn.l  rr  r.'  'V^'  ''°""'  ''^'"'"''>"  *  ^°'  5«9.40. . .  .8  ,4..3.  Thomas  Hill.  $,500. . .  .«n399  Firs; 

t  ,^  TMort  •    .u"^:*  ^"""  ""•  '''""°"-  *^°°~     •  «  '4=93.  Koch  &  Co..  Calhoun.  Robbins  &  Co  .  $7^25. . . 
Jf  ,4354.  Morton.  Bliss  &  Co..  Knickerbocker  Trust  Co..  $,8235.50  (46). 

54-     Second  Period.— A,,t/m*^r  /-OfTerings  were   accepted   from   the   following  dealers:    7    //. 
A'.'«'///a«-Jt  15.75.  his  note  at  30  days  from  this  day  in  favor  of  and  payable  at  National  Union  Banki 


THE    DISCOUNT    CLERK 

$5000 EHiot  L.  Butler— t\^\l(i,  note  signed  by  Ezra  Corning,  endorsed  by  James  G.  Cannon,  dated  at 

Tonawanda.  N.  Y.,  Aug.  3,.  at  4  months,  $30000;   exchange  5  days Cooper,   Hewitt  &*  C<j.— J{  ,5,77, 

note  signed  by  Radlock  Commission  Co.,  dated  Aug.  38.  at  4  months,  payable  at  Denver.  Colo..  $17425.90; 

exchange  7  days  (grace) IVestern  Electric   G>.— 515178.  draft   at  90  days'  sight,  accepted   October  24. 

payable  at  Galveston.  Tex.,  by  Ball  Electric  Light  Co.,  $75000;  exchange  8  days  (grace) William  Clark— 

J  15179.  note  signed  by  Goldberg  &  Co..  endorsed  by  Michel  &  Bros.,  dated  at  Omaha,  Neb..  Sep.  39,  at  60 

days.  $900;  exchange  7  days  (grace) Morton,  Bliss  fi"  Co.—^  .5.80.  their  draft  on  R.  E.  Anderson  &  Co.. 

at  30  days'  sight,  accepted  Oct.  29.  payal)le  at  National  Bank  of  Commerce.  Tacoma.  Wash..  $150000;  exchange 

9  days  (grace) Cashier  Account— iH  1518,.  note  favor  E.  A.  McAlpin.  signed  by  George  W.  White.  payal)le 

at  Washington,  D.  C.  dated  Oct.  31,  at  3  months.  $16345;  exchange  5  days Gilbert  Manufacturint;  Co.-r- 

8,5182.  note  signed    by  Lee.  Tweedy  &  Co.,  dated  Sep.  i.  at  3  months,  payable  at  Chase   National   Bank. 

$287,6.23 7.  Selwin  Tait—'S,  15,83.  his  note  at  60  days  from  this  date  in  favor  of  and  payable  at  National 

Union  Bank.  $3500 New  York  Rubber  Co.—%  ,5,84.  note  signed  by  Edward  King,  dated  Oct.  1.  at  2  months. 

payable  at  National  Union  Bank.  $15000.  rate  l%  \ytv  cent G.  G.  Haven— 'S.xixZ'^,  note  signed  by  Saginaw 

Milling  Co..  endorsed  by  Isaac  Bearinger.  dated  Aug.  28,  at  3  months,  payable  at  Bank  of  Saginaw.  Saginaw. 

Mich..  $,2700.  rate  4  per  cent.;  exchange  7  days  (grace) Cashier  Account— %_  ,5,86.  note  signed  by  Eibridge 

Talmer.  President,  and  C.  E.  Richardson.  Cashier,  City  National  Bank.  Paducah.  Ky..  favor  Central  Trust  Co.. 

New  York,  dated  July  22.  at  6  months.  $50000,  rate  5  per  cent.;   exchange  6  days  (grace) E.  R.  Durkee  &- 

Cfl.— 5  ,5187,  their  draft  on  Ross  &  Carnegie,  at  90  days,  accepted  Oct.  2.  payable  Freehold  Bank.  Pittsburg. 
Pa..  $4233.91;  exchange  5  days. .  ..Redmond,  Kerr  Sf  Gj.— J  15188.  note  signed  by  Union  Sand  Co..  endorsed 
by  Peter  Nicholson,  dated  Oct.  14.  at  45  «lays.  payable  at  American  Exchange  Bank.  St.  Louis.  Mo.,  $20000. 
rate  514  per  cent.;  exchange  $35  (grace).  .  .  Cashier  Account— 'ix'^x^,  F.  W.  Allen's  note,  our  favor,  endorsed 
by  F.  I).  Tappen.  dated  Oct.  22.  at  40  days,  payable  at  Gallatin  National  Bank.  $17500.  Also.  Jf  '5.90.  Kissam. 
Whitney  &  Co.'s  note,  dated  Oct.  ,2.  at  50  days,  favor  A.  D.  Juilliard.  payable  at  35  Wall  Street.  City.  $47318.78! 
rate  4  per  cent G.W.  Adams— 'Xx^x^x,  his  note  dated  to-day.  90  days,  favor  Fifth  Avenue  Trust  Co..  $5000! 

55.     Third  '9 vnxA,— December  /—Offerings  were  accepted  from  the  following  dealers:    Elliot  L. 
Butler— %  ,5,93.  note  signed  by  Klondike  Mining  Co..  payable  at  Macon.  Ga..  dated  Sep.  39.  at  90  days.  $,2450' 
exchange  4  'lays  (grace). . . .  Cashier  Account— t^x $193.  note  signed  by  Stern  Brothers,  endorsed  by  Goldman.* 
.Sachs  &  Co..  dated  at  New  York.  Nov.  ,6.  ai  45  days,  payable  at  Fourth  National.  $78935.  rate  4J^  per  cent. . 
//.  //.  Swasej'—Xxsi94.noic  sign.d  by  Wallace  Mortimer,  endorsed  by  Sheldon  &  Co..  dated  at  New  York 
Nov.  22.  at  2  months,  payable  at  Portsmouth.  N.  H..  $,645:  exchange  5  days  (grace) ....  AVw  York  Rubber 
G».— 5,5,95.  their  note  dated  to-day  at  30  days,  endorsed  by  Samuei  Sloan,  payable  at  National  Union,  rate 
5  per  cent..  $,45000       .  IVilliam  Cark—t  .5.96.  Ids  draft  dated  at  New  York.  Nov.  8.  at  3  months'  sight  on 
Houston  Evaporator  Co..  accepte.l  Nov.  ,7.  payable  at  Houston.  Tex..  $450;  exchange  8  days  (grace) 
Denny,  Poor  &*  Cfl.-tlSi97.  note  signed  by  S.  Keith,  endorsed  by  J.  T.  Howell,  payable  at  NashviUe  Tenn 
dated  Oct.  26.  at  4  months.  $4.60.2'-;  exchange  4  days  (grace). .  .  .  Ca.hier  Account-^  ,5,98.  note  si-ned  by 
Kumfort  Shoe  Co..  endorsed  by  Dix  &  Phyfe.  payable  at  Council  Bluffs.  Iowa,  dated  Nov.  28.  at  30  days 
$3.70.95;  exchange  7  days  (grace).  . .  .  jr.  H.  Newman-^  15,99.  note  signed  by  Nathan   P.  Dodge,  payable  at 
New  Albany.  Ind..  dated  Oct.  29.  at  60  days.  $375;  exchange  5  days  (grace). . . .  Chas.  H.  Baker-^  x^zoo  note 
signed  by  J.  S.  Fleming,  endorsed  by  M.  L.  Reid.  payable  at  Jefferson  Citv.  Mo.,  dated  Nov.  22.  at  2  mdnths 
$2382  76;  exchange  7  days  (grace)   ...W.  F.  Wakeman— ^x^zox,  his  draft  dated  at  New  York.  Nov.  ,9.  at  <^ 
days' sight  on  Suburban  Transit  Co..  accepted  Nov.  28.  payable  at  Wheeling.  W.  Va..  $13400;  exchange  4  days 
(grace). . .  .Andrew  AfcLean  &*  Co.—t  ,5202.  Hugh  Glenn  &  Co.'s  note,  payable  at  Utica.  N.Y..  dated  Nov  26 
at  35  days,  rate  5  per  cent..  $42952.85:   exchange  3  days. . .  .Redmond,  Kerr  &^  O.— Jf  ,5203.  their  note  at  93 
days,  dated  at  New  York.   Dec.  ,.  payable   at  National   Union.  $28000 ....  Crtj/«Vr  ^rr,)««/-:J  15204.  note 
signed  by  Biermann.  Heidelberg  &  Co..  endorsed   by  Denscomb  &  Jennison.  payable  at  National  Shoe  and 
Leather.  City,  dated  Dec.  I.  at  30  days.  $6472. . . .  Gilbert  Manu/acturimr  Co.—$  ,5205.  note  signed  by  Voigt 
Herpolsheimer  &  Co..  endorsed  by  H.  J.  Hollister.  payable  at  Grand  Rapids.  Mich.,  dated  Nov.  10,  at  48  days' 
rate  5^  per  cent.,  $,63,2.50;  e.xchange  4  days  (grace). 

5*»  Fourth  Period.— /?^r<rw*^r  J/— Offerings  were  accepted  from  the  following  dealers:  Edward 
KiHfr-^  ,5206.  note  signe<l  by  State  Trust  Co..  payable  at  66  Broadway,  dated  Dec.  3,.  at  4  months,  rate  4  per 
cent..  $,  75000...  <7.  W.  Adams— ^xs207.  note  signed  by  Flagler  Cornice  Co..  endorsed  bv  T.  E.  Ellsworth 
payable  at  Lockport.  N.  Y..  dated  Dec.  26.  at  30  days.  $4273-. 9:  exchange  4  days. ...  Gi.rA/Vr  Account! 
1 15208.  note  signed  by  Taylor- Woolfenden  Co..  dated  at  New  York.  Nov.  ^6.  at  3  months,  payable  at  Detroit. 
Mich..  $17525;  exchange  5  days  (grace) ....  0/w  Brothers  &*  07.-5,5209.  their  draft  dated  at  New  York.' 
Oct.  15.  at  4  months'  sight,  on  Jos.  Home  &  Co..  accepted  Oct.  20.  payable  at  Marine  National,  Pittsburg.  Pa.] 
$22000;  exchange  4  days. .    .  Western  Electric  Co.—$xs2xo,  note  signed  by  Newark  Telephone  Co.,  dated  at 


BANK    BOOK-KEEPING 

New  York.  Dec.  i.  at  4  months,  payable  at  Fourth  National,  rate  5  per  cent..  $75000  miliam  Clark- 
^15211.  note  s.gne.1  by  McC.raw  Fertilizer  Co..  endorsed  by  Guarantee  Loan  and  Trust  Co.  payable  at 
Seattle.  Wash  dated  I>ec.  19.  at  loo  days.  $3500;  exchange  9  days  (Rrace). . . .  Ca.AiVr  AccouHt-t^^^^^ 
note  signed  by  Smith.  Gray  &  Co..  payable  at  Bank  of  New  Amsterdam.  City,  dated  Nov.  25  at  2  months' 
rate  5J4  per  cent  $4,258.60.  ...H.  .»/,n7/W_jJ  ,52,3.  note  signed  by  C.  O.  Willis,  dated  Dec  ,9  at  60  days' 
payable  at  Vicksburg.  Miss..  $19400;  exchange  7  days  (grace). . . .  Gilbert  Manufacturing  Co.-t  i^2x±  W  l' 
Harrison  &  Co.  s  note,  endorsed  by  R.  H.  Lynn,  payable  at  Leesburg.  Va..  dated  Dec.  17'.  at  2  ntonths  $,7oo- 
exchange  5  days  (grace)..  Zm/  6-  7aj./.r-}{  152.5.  their  draft  dated  Dec.  3.  at  3  months"  si^hr  on 
E.  r..  Reade.  accepted  Dec.  8.  payable  at  Citizens'  National.  Raleigh.  N.  C.  $,428..25;  exchange  5  days 
7  Selwm  Tatt-txS2x6.  note  signed  by  Brooks  Elevator  Co..  endorsed  by  Robert  Moody,  dated  at  Fargo  N  d" 
Dec.  23.  at  30  days,  payable  at  Aberdeen.  S.  D..  $2968;  exchange  7  days. . . .  Cashier  Account-^  ^^M,  note 
signed  by  John  Wanamaker.  dated  Dec.  3..  at  60  days,  payable  at  National  Union,  rate  4?^  per  cent.  $50000 
....Umon  Mort^^a^r,  c,>.-jj  ,52.8.  note  signe.l  by  Salem  Realty  Corporation,  dated  Dec.  7.  at  3  months 
payable  at  Salem.  Oregon,  rate  5  per  cent..  $35500;  exchange  9  days. . . .  Cooper,  Hewitt  Sr-  Co.-t  .5219  not^ 
signed  by  Garden  City  Commission  Co..  endorsed  by  M.  Malarin.  payable  at  San  Jose.  Cal..  dated  Nov  io.  at 
4  months.  $19478.34;   exchange  9  days.  '    ^ 


I 


li 


I 


CHAPTER    V. 
THE    COLLECTION    CLERK. 

57.  As  his  title  suggests,  the  collection  clerk  takes  charge  of  those  papers  which  are  left 
with  the  bank  for  collection;  at  least  such  as  are  to  be  sent  out  of  the  city  for  collection  Paper 
payable  m  our  own  city  usually  passes  through  the  hands  of  the  second  or  third  teller  as  the  case 
may  be  excepting  sight  and  time  drafts,  which  are  first  recorded  by  the  collection  clerk  and 
afterwards  delivered  to  the  third  or  note  teller  for  collection  by  messenger. 

58.  ForeigTi  Checks.— Most  banks  make  it  a  rule  when  dealers  wish  to  deposit  checks 
payabe  out  of  town -known  as  -foreign  office"  items-to  charge  a  small  fee  for  collecting. 
Ihis  fee  IS  deducted  from  the  total  of  the  deposit  ticket  at  the  time  the  deposit  is  made,  as 
explained  under  the  duties  of  receiving  teller  (28). 

59.  Time  Coaections.-Notes,  sight  and  time  drafts,  coupons,  etc.,  left  for  collection  by 
dealers  are  entered  in  the  back  of  the  pass-book  or  in  a  separate  pass-book  as  may  be  required 
and  are  not  placed  to  the  dealer's  credit  until  the  returns  have  been  made.  When  a  large  number 
of  collection  items  are  presented  by  a  dealer,  it  is  customary  for  him  to  prepare  a  memorandum 
rece.pt  containing  a  descnpt.on  of  the  items,  which  may  be  signed  by  the  teller  and  held  by  the 
dealer  instead  of  the  pass-book  record. 

Some  banks  send  all  paper  payable  at  distant  places  direct  to  a  bank  at  the  place  where  the 
same  .s  payable.     The  additional  correspondence  required  and  the  lack  of  knowledge  concerning 

Tlr^Tt  ""^  "^  '^"  ^^"•'^  ^^•''^  ^^"^^  ^^  ^^""^'^^  '"*"  ^^^""««  -ith  us,  render  this  plan 

impracticable  in  most  casea  ' 

60.  Correspondents.— The  advantages  accruing  from  the  system  of  having  special  agents  or 
correspondents  with  which  to  transact  our  business,  instead  of  entering  intoUiness  relations 
w.th  every  individual  bank  whose  checks  and  drafts  may  be  received  by  us,  are  evident  when  we 

V^^lrZ  IV" I  '?"'^'  f  '  """"'^  ^"  ^""'^  ^"^'^  P^P^^  f"--  collection  pavable  at  several 
hundred  banks  located  at  almost  as  many  different  points  throughout  the  country  By  this 
arrangement  our  correspondence  is  reduced  to  a  minimum,  and  we  are  relieved  from  ascertaining 
the  financial  standing  of  the  several  individual  banks. 

The  charges  to  be  made  by  correspondents  for  collecting  cash  and  time  items  remitted  to 
them  are  usually  governed  by  contract.  In  some  cases  the  correspondent  agrees  to  remit  at  a 
R.ven  day  once  a  week  at  par;  that  is.  it  counts  the  use  of  the  money  so  collected  as  an  equivalent 
to  a  collection  charge.     Others  agree  to  remit  at  stated  intervals,  deducting  a  uniform  charge  at 

remTtlT''  '."'•  .  ^"  ")"'^'  '''  '""^"'  ''''  «'  ^^^'^^"^'^  "'^^^-^  '^  -^^  '-  -^  the  titne  of 
rem.ttance.  Some  banks  make  no  charge  for  cash  items,  but  charge  for  time  items  at  such  rates 
as  may  be  agreed  upon. 

61.  Reciprocal  Accounts.-The  term  "reciprocal  accounts"  refers  to  agreements  by  which 
correspondents  are  to  keep  balances  with  us  on  deposit  against  which  they  may  draw  drafts  if  in 
re  urn  we  will  send   them   our  cash  and  time  collections  upon  points  in  their  vicinity,  for  the 

agreed'TJn  '^'^  """'  '"  '"'''''  '""''  ^^"""^^^  """"^  '""''  ^'  '"'^  ''™''  ^  "^^  ^  '""'"^"y 

ir.,..**'  CoUection  or  No.  2  Account.-Correspondents,  as  a  rule,  require  two  accounts  to  be 
Kept:  one  known  as  a  general  account,  which  is  credited  with  all  cash  item.s-money,  city  and 
foreign  checks  and  drafts,  etc. -and  interest  on  its  average  monthly  balance,  and  is  debited  for 
an  drafts  drawn  against  it,  returned  cash  items  previously  credited,  and  such  other  payments  or 
irmisfers  as  .t  may  advise  from  time  to  time;  the  other,  technically  termed  a  "  collection  "  or 
^o.  2     account,  is  debited  for  all  cash  items  sent  for  collection,  advices  of  time  collections 

♦5 


BANK    BOOK-KEEPING 

paid,  and  all  other  charges  for  which  instructions  have  not  been  sent  requiring  them  to  be  debited 
to  their  general  account,  and  is  credited  for  all  remittances  which  are  in  payment  of  items  which 
have  been  previously  charged  to  this  account.  The  credits  to  the  collection  account  consist  of 
drafts  upon  some  New  York  bank,  or  upon  the  general  account  of  the  correspondent  which  in 
the  latter  case,  would  cancel  the  collection  account  by  reducing  the  interest-bearing  balance 
of  the  general  account. 

63.  Collection  Banks.-In  addition  to  the  banks  keeping  reciprocal  accounts  with  us  and 
who  also  make  collections  for  us.  most  banks  find  it  necessary  to  send  cash  and  time  items  payable 
at  other  places  received  both  from  depositors  and  correspondents,  to  still  other  banks  for 
collection.  Collection  banks  make  such  charges  as  may  be  agreed  upcm,  and  remit  immediately  or 
at  stated  intervals  as  provided  in  the  contract.  These  banks  differ  from  reciprocal  correspondents 
from  the  fact  that  they  keep  no  general  account  with  us  and  merely  act  as  agents  for  their  territory 
They  are  debited  for  items  sent  and  credited  for  returns,  the  check  in  payment  being  New  York 
exchange.     Their  account  then  will  necessarily  balance  when  all  returns  have  been  made. 

64.  RcmittaiKe  Letters.— When  items  are  sent  with  the  desire  that  immediate  returns  shall 
be  made  upon  their  collection,  the  usual  form  of  letter  is  as  follows: 

CHAS.  B.  FOSDICK,  P„sW.  JOHN  L.  RIKER,  V.„-I>.«.t.  j.  s.  CASE.  C*,m«. 

Capital,  $300,000.  ^  Surplus,  $600,000. 

Second  National  Bank 


OF  THE  CITY  OF  NEW  YORK. 


Cashier. 


^«'i<>'»rt/  iBank  of  (Sommeice,  St.  £ouU.  DTBo, 


New  York,  &>*3.  /,  1897. 


Dear  Sir:     I  enclose  for  Collection  and  Returns  as  stated  below. 

Yours  truly, 

J.  S.  CASE,  Cashier. 


Number 

Payer 

■ _ —                                                                         1 

Amomit 

i4^ 

dGamilton  Bhcftigetatoi  (So. 
t%.  ^,  £ackland 

^65  0 

70 

THE    H.  B. 

Date  Received 

Drmwer 

EndorBcr 

Payer 

Wb«r«  Payakte 

iSq7 
Apr.  . 

May 

I 
'7 

2 

s 

The  11.  B.  Clajlin  Co. 
Trowbridge  &*  Co. 

//.  7.  I/ollister 
Charles  Bard 

/tice,  Stix  &'  Co. 
Spring  &»  Co. 
Joske  Bros. 
Howe  b'  Stettm 

St.  Louis,  Afo. 
Grand  A'afids,  Mich. 
San  Antonio,  Texas. 
Portsmouth,  N.  H. 

Ft 

>RM  or 

THE    COLLECTION    CLERK 

In  forwarding  items  to  corres,>ondents  or  to  collection  banks  who  remit  at  stated  periods  the 
sums  so  collected  to  be  held  by  the  collecting  bank  until  its  regular  remittance  day,  the'lw  .  g 
form  IS  in  general  use:  ■''         •"•"'» mg 


The    Fourth    National    Bank 

OF  THE  CITY  OF  NEW  YORK. 


».  COWARO    SIMHOMS.  MEtT. 
*lk%.   a.   CANNON.  VICC-MUT. 
C.    N     ^«TTCIIW>N,   CMMtFR. 
B.  O.   WNOCNHIU.,  AMT.  CAaMWII. 


N  E W  YORK, ™ f f. 1 89. 7, 


Sdwazd  Qy.  ^tcAktey,  ^        ^     ,  . 

^ iisq.,  Cashier, 

^odton,    dUnaAA. 


Dear  Sir: 

Enclosed  please  find  items  for  Collection  for 
our  account  as  stated  beloto. 

Yours  respectfully, 

CHAS.  H.  PA  TTERSON,  Cashier. 

nIJ7.u"T" t?""?'  ^""""^"^  '^""  '''""  "'"^''-  '""''''"'  '■«  ^^''^  ''^'^'r.     Items 

lUnr!  /T'^  -"         "'"'"""^  ''""''^  ''  '''"'"''  ""  '""'  ^"'^  «'>'  f'^'^i  M  the  con. 
ventence  of  parties.  "^ 


c^cyton  iOtif  goodA  60, 
Oiy.  (JIB.  uGume,  <^alem 
afpzinqman  Sf  (Bo.,  (Soncoxd 


So 


3.3 


The  only  description  of  the  paper  necessary  is  the  name  of  the  payer.     In  some  cases  the  date 
of  the  Item  and  its  number  are  also  given,  but  such  information  is  nit  essential 

f«lH    1  ""?       V      "'^  '*'"^'''  ^'''  '^'^  ''"'■'^^'^  ^'"^'^  ^'^  P^*"t«>  i"  duplicate  and  perforated  at  the 
folded  edge  that  a  carlx,n  sheet  may  be  placed  between  them.     By  using  a  .u„'  ^i'^le 


CLAFLIN 

CO. 

Date 

Time 

Do* 

Amount 

Exchange 

\     When  P 

aid 

Remarks 

Apr. 
May 

r 
17 

3 

3  mo. 
Sight 

bods. 

gods. 

Junr 

June 

Aug. 

4 

-'S 
4 

10460 

4500 

'75 
'^43 

60 
98 

to 

5 

I 

46 
63 

»7 

Apr. 
Aug. 

7 

•27 

7 

S  Returned  June  2g  1  (pj 
\  Protest  fees,  $1.2^ 

COLLECTION   REGISTER 


27 


M' 


BANK    BOOK-KEEPING 

BOSTON.    MASS.,    NATIONAL 


Date  Sent 


/*7 


23 
27 


Drawer 


I'nion  Aforh^as^c  Co. 
KnkkerhMkfr  Trust  Co. 
Atlas  Cement  Co. 


Payer 


Ifo7it  ^  Stetson 
Qmroy  &'  Co. 
New  F.n;j;hmJ  Trust  Co. 
E.  Z.  Drone 


WlMr*  PajraMc 


Portsmouth,  A'.  //. 
Salem,  Mats. 

Boston 
AiKktitmi,  Me. 


r«r  WhoM  Credit 


The  II.  /v.  r/,/y*/«  Co. 
Morton,  Bliss  ^  Co. 
Knickerbocker  Trust  Co. 
IV.  F.  IVakeman 


FORM    OF 

writing  will  thus  prepare  two  copies,  one  of  which  may  be  preserved  by  the  bank,  thus  supplanting 
the  necessity  of  keeping  a  separate  register  of  these  items.  The  letter,  in  this  case,  should  give 
more  complete  nif..rmation,  and  a  form  suggesting  this  treatment  here  follows- 


NATIONAL   UNION   BANK 

MUTUAL  LIFE  BUILDING 

}2  NASSAU  STREET. 

New  York,. 
^.  ^.  Street,  Saq., 


Jos.  C.  Hkndrix.  President. 

G.  G.  Havbn.  Vice-Presidenc. 

Edward  O.  L«ich.  id  Vice-Prrnideni  and  Cashier. 

H.  H.  SwASBv,  AsaisUnt  Cashier. 


95^v. 


10, 


.189X 


Your  favor  of_ 


(^fiica^o,  QfU, 


8th 


.received  with  enclosures. 


Please  collect  the  enclosed  for  our  account. 

Respectfully  yours  ^ 

E.  O.  LEECH,  Cashier. 


^"OTEST  AND   RETURN  AT  ONCC   IF  NOT  PAID 

PROM  MAKER 


WHUE  PAYABU 


/j/  oGaitfoxt) 
&.  &G,  ^ine 
ST^DotAe  Sc  Go, 
OoeJemption 


\Dhoma.)  uGunt 
UDimouz  cS"  &o, 
young  cS-  Shield 
John  S)ewolf 


^anhetd'  9l5ational 
lAt  National 
JoUet,  SlL 
SDclavan,  *V?iA, 


13,5 


^0 
69 


Owing  to  the  large  number  of  cash  items-checks  and  drafts— received  from  dealers  among 
their  deposits  and  from  correspondents  for  collection  and  credit,  we  have  assumed  that  this  latter 
form  of  remittance  letter  would  be  used  in  this  set  for  cash  items,  thus  avoiding  a  large  amount  of 
work  which  the  student  would  be  compelled  to  do  in  registering  these  items  as  sent  to  other  banks 
for  collection. 

65.  Colkctioa  Register.  — That  the  student,  however,  may  understand  the  process  of 
registering  collection  items  we  have  adopted  that  plan  for  all  notes,  drafts,  etc..  received  from 
dealers  and  correspondents  which  are  to  l)c  sent  to  other  banks  for  collection  and  credit.  Notes 
and  drafts  for  collection  are  timed  across  the  face  in  the  same  manner  as  explained  under  duties  of 
discount  clerk  (46).  excepting  that  a  red  jiencil  is  generally  used  to  distinguish  collection  items. 

38 


THE    COLLECTION    CLERK 


BANK    OF    REDEMPTION. 

Date 

Time 

Due 



Gross 
Amount 



Exchange 

Net  Amount 

When 
Credited 

Remarks 

*ajr 

— 

May 

3 

gods. 

Aug. 

4 

»i43 

98 

/ 

87 

2242 

if 

Altf^r. 

7 

June 

^ 

60  " 

«t 

38 

3300 

3 

30 

349^ 

30 

" 

30 

J>^iy 

36 

t4 

Sight 
60  ds. 

Sep. 

'3 

44793 
'38 

iS 
73 

44 

So 

44730 

38 

July 

3' 

Returned  g/20,  fees,  S/.4J 

REMITTANCE    REGISTER. 

Instead  of  entering  these  items  in  a  miscellaneous  manner  as  was  done  in  the  discount  register,  it 
IS  more  convenient  to  record  a  large  number  of  items  received  from  a  dealer  or  correspondent 
under  the  separate  title  of  their  account.  Such  dealers  and  banks  as  have  but  few  collection  items 
may  be  entered  under  the  general  title  of  Sundries,  in  the  back  part  of  the  collection  register. 

66.  Collection  Tickler.— As  in  the  case  of  bills  discounted,  items  for  collection  are  ne.\t 
recorded  in  the  tickler.  The  same  arrangement  of  space  may  be  preserved  as  in  the  discount 
tickler,  though  the  following  headings  are  required:  Number.  Maker,  For  Whose  Credit,  Where 
Payable,  Amount,  and  Remarks. 

It  is  not  the  general  practice  to  number  time  collection  items  unless  the  paper  already  bears  a 
number,  which  number  may  be  preserved.  The  name  of  the  paver  of  the  paper  gives  the  clearest 
description  of  the  item.  For  the  aid  of  the  student,  however,  in  identifying  collection  items  as 
payments  are  advised  and  for  other  references,  we  have  deemed  it  expedient  to  number  all  time 
Items  consecutively  as  received.  Hills  discounted  which  appear  in  the  discount  register  need  not 
be  renumbered,  but  when  sent  away  will  preserve  their  discount  number. 

^.  Remittance  Reg:ister.— Paper  payable  in  the  city  the  collection  clerk  delivers  to  the  note 
teller  for  collection,  usually  the  day  before  it  is  due.  That  payable  out  of  the  city  must  be  sent 
to  some  correspondent  a  reasonable  time  before  it  is  due.  The  name  and  address  of  the  corre- 
spondent to  which  time  items  are  to  be  sent  for  collection  are  placed  at  the  top  of  a  page  in  the 
remittance  register  and  a  number  of  pages  allowed  for  its  use,  that  all  items  collected  by  this 
corresiwndent  may  be  consecutively  entered,  thereby  securing  e.x|>ediency  in  remitting  and 
convenience  in  charging  to  the  correspondent  when  payment  has  been  advised. 

68.  Endorsement.— Paper  sent  away  for  collection  must  be  endorsed  payable  to  the  bank  to 
which  It  is  remitted.  The  Supreme  Court  has  handed  down  a  decision  which  holds  that  a  (jualified 
or  restrictive  endorsement  on  a  check  or  draft  de|x>sited  for  collection,  such  as,  "  For  Collection," 
"For  Deposit  "or  ''For  .\ccount  of,"  is  not  binding  on  the  remitting  bank;  that  is  to  say,  that 
with  this  form  of  endorsement  the  bank  that  remits  the  item  for  collection  does  not  guarantee  the 
correctness  and  genuineness  of  either  the  prior  endorsement  or  the  amount.  The  New  York 
Clearing  House  requires  its  members  to  guarantee  such  endorsements  by  an  added  endorsement 
This  practically  enforces  the  use  of  a  full  endorsement  in  all  cases. 

For  their  principal  corresiJondents  most  banks  use  a  rubber  stamp  containing  the  entire 
endorsement.  In  other  cases  a  blank  hne  is  provided  in  the  stam])  in  which  the  name  of  the 
cashier  of  the  bank  to  which  the  item  is  sent  is  afterwards  written. 

The  two  forms  follow: 


Pay  First  National  Bank, 

Chicag:o,  or  Order, 

National  Union  Bank, 

New  York. 
E.  O.  Leech,  Cashier. 
EndofwmenU  piaraotccd. 


Pay 


Cashier,  or  Order, 

The  Fourth  National  Bank, 

New  York, 

September  I,  1897. 

Chas.  H.  Patterson,  Cashier. 


* 


BANK    BOOK-KEEPING 


Pay  Bank  of  Mauston, 

Or  Order. 
Charles  H.  Grote. 


Pay  American  Trust  &  Savins:s  Bank, 

Qucag^Oy  niincMSy 
OrOftJer. 

Bank  of  Mauston. 
JcH.  T.  Heath  &  Co. 


The  acconij>anying  illustration  pre- 
sents   the    endursements   of  a    check 
drawn  on  The  Fourth  National  Bank, 
New  York,    by  Bliss,    Fabyan   &  Co.,* 
and    remitted    to    Charles   H.   Grote, 
Mauston,  Wis.     It  is  deposited  by  him 
in  the  Bank  of  Mauston,  which  being 
a  Banking  Firm,  signs  its  endorsement 
by  the  name  of  the  firtn,  and  forwards 
the  check  to  its  Chicago  correspondent 
for  collection.     The  American  Trust  & 
Savings  Bank  remits  it  to  the  National 
Bank  of  the  Republic,  New  York,  for 
collection  and  credit  to  their  account. 
The   National    Bank   of  the    Republic 
sends    it    to    the    New   York    Clearing 
House,  where   it    is    included   among 
other  checks  and  drafts  given  to  The 
Fourth  National  Bank  in  exchange  for 
checks  and   drafts  drawn  against   the 
National  Bank  of  the  Republic.     The 
Fourth    National   Bank   charges  it   to 
the  account  of  Bliss,   Fabyan  &  Co., 
and  returns  it  to  them  as  a  canceled 
voucher  at  the  end  of  the  month. 

69.    Advice  of  Payment.— Time 

Items  are  not  charged  to  the  account 

of  the  bank  to  whom  they  have  been 

remitted  until  an  advice  of  their  pay- 
ment has  been  received,  e.xcepting  bills 

discounted,  which  are  charged  at  the 

date   of   maturity.     Where    items  are 

not  advised  within  a  reasonable  time, 

however,  they  are  usually  charged   up 

and  the  endorsers  credited,  subject  to 

reversal  if  its  non-payment  should  sub- 
sequently be  reported.  Some  banks 
attach  a  slip  to  all  time  items  sent 
away  specifying  for  whose  credit,  when 
sent,  payer,  and  amount,  which  slip  is 
to  be  stamped  by  the  collecting  bank 
and  returned  as  a  report  of  its  payment. 
A  special  letter  of  advice  is  usually 
senf,  however,  stating  the  amount  of 
exchange  charged  and  the  proceeds 
of  each  item,  from  which  the  proper 
memorandum    is   made    in    the  remit- 

an'credtd  '  Tu  '"'''  'V  ""'.  '^  '''  ^°"^^''°"  ''^'^  '"^'-^'"^  ^^«  — ^s  to  be  debited 
The  pir  ilur  w  "r^  "'  •'"'"'  '^"  ^'"  '"'"'"^^  ''^  P-^"**-*^  «"  ^^e  following  page. 

'rr  othe      the  a       "T"'''  T    '""  ^'""*="'"-"  '-'"^  charged  in  one  de,,artment  and  cred.ted 
the  other,   the  account  merely  being  used  as  a  check  on  the  two  de,>artments 


Pay  to  the  Order  of  the 

Natl.  Bank  of  the  Republic,  N.  Y. 

Sept.  20,  1897. 

The  American  Trust  &  Savings  Bank, 

Chicag:oy  IlL 
J.  R.  Chapmaiv  Cashier. 


Received  Payment 
Through  the 

New  York  Clearing  House. 

Sept.  22,  1897. 

National  Bank  of  the  Republic. 

Charles  H.  Stout,  Cashier. 


J 


FORMS   OK    KNl><)kSK.MKNTS. 


THE    COLLECTION    CLERK 


Collection  Clerk's  Time  Credits. 

The  Fourth  National  Bank 

OF   THE   CITY   OF   NEW   YORK. 

S New  York, 189 

CHARGE.     Time  Collections 

CREDIT.     Sundry  Ledgers  as  per  back  of  ticket 

For  Foreign  Time  Collections  credited  dealers  this  day 

„  Dollars 

Collection  Clerk. 


70.  Letter  of  Advice.— The  customary  wording  of  a  letter  of  advice  is  given  below.  It 
should  present  the  main  facts  in  convenient  form  for  record,  and  should  not  be  encumbered  with 
unnecessary  explanation  or  other  irrelevant  matter.  The  letter  of  advice  is  the  voucher  from 
which  the  collection  clerk  makes  the  proper  extensions  in  the  collection  and  remittance  registers. 
He  also  authorizes  the  net  amount  of  the  described  items  to  be  placed  to  the  credit  of  dealers,  ox 
payment  to  be  made  to  transient  customers,  as  the  case  may  be. 


The  First  National   Bank. 


CHAS.  If.  PATTERSON,  Esq.,  CashUr, 

Fourth  National   Hank,  New  York. 


Chicago,  III.,  Aug.  j/,   1897. 


Dear   Sir:      Your  account  has  credit   for  the   proceeds  of  Collections  as  stated   below. 

Yours  respectfully, 

RICHARD  J.   STREET,   Cashier. 


Your  No.  or  0«tc 


7 1  it 
f459^ 


Payer 


A\>yal  Trust  Co. 
E.  C.  Deane 


Place 


Chitago 
Racint,  Wis. 


Amount 


39475 
4Jgo 


S7 


Charges 

Proceeds 

I               39 
S 

48 
36 

J943S 
4^8j 

62 

St 

71.  Letter  of  Advice  and  Remittance.— The  payment  of  cash  items  is  usually  not  advised 
until  the  proceeds  are  remitted.  The  letter  of  remittance  from  the  collecting  bank  states  the 
payer  of  the  item,  the  amount,  and  the  total  exchange  deducted.  If  the  pavment  were  to  include 
time  Items  which  have  been  previously  advised,  the  net  amount  only  of  such  items  would  be 
included  in  the  remittance.  A  letter  of  advice  and  remittance  is  given  on  the  following  page,  and 
requires  no  further  explanation. 


BANK    IJOOK-KKEPING 


lameu^. 


'^/igad^^et^ 


f 


I.KTTKR    OK    AlJVICE    AND    REMITTANCE. 
32 


THE    COLLECTION    CLERK 

7a.     Collection    Rates.— Where   110   sixjcial   arrangement   is    made   concerning   cliarges   for 
collection,  the  current   rate  of  exchange   usually  governs.     This  will  de|)end   ui)Gn  a  nun*Iber  of 
things,  first  among  which  may  be  mentioned  the  movement  of  merchandise  and  natural  products. 
For  instance,  during  the  months  of  October,  November,  and   December,  at  the  time  when  New 
York  checks  are   being  sent  in   payment  of  shipments  of  cotton,   the  Southern  banks  will  take 
collection  items  from  New  York  and  collect  without  charge,  owing  to  the  fact  that  they  have  a 
large  balance  on  deposit  in  New  York  which  they  desire  to  reduce.     But  later  on  in  the  season 
when  the  conditions  have  been  nearly  reversed  the  Southern  banks  will  advance  their  collection 
rate,  often  reaching  as  high  as  one-fourth   per  cent.     Other   banks  charge  arbitrary  rates    and 
having  no  fi.xed  scale  will  charge  such  amounts  as  they  deem  consistent  with  the  circumstances 
From  these  illustrations  it  will  be  seen  that  collection  rates  are  subject  to  changing  conditions 
•Ihrough  the   Eastern  and  Middle  States  the  rates  are  generally  uniform,  most  banks  ciiarging  a 
fixed  rate  during  all  seasons  of  the  year.  ,  In  other  sections,  during  ordinary  conditions,  the  rate 
varies  from  semi-weekly  at  par  up  to  one-fourth  per  cent, 

MEMORANDUM   OF   TRANSACTIONS. 

73.  First  VtXioL— October  2-\n  opening  the  collection  register  li.e  eight  accounts  first  given  below 
should  each  be  allowed  ce-haif  page  space.  The  Sundries  which  follow  will  then  be  entered  separately  as 
s|iecifietl.     The  name  of  the  dealer  or  bank  from  whom  the  item  is  received  is  "iven  in  it  ilics 

liulkUy,  DuntOH  &-  Co..-  1 1.  note  signed  by  Jacob  Meyer  &  Bro..  endorsed  by  C.  H.  Farwell.  payable  at 
Chicago,  dated  June  28.  at  4  months.  $9295.11 . . .  .Jt  2,  .Iraft  at  60  days'  sight  on  Frederick  Cox  &  Co    for  $-17? 
accepted  Sep.  25   payable  at  California  State  Bank.  Sacramento   . .  jf  3.  draft  dated  Oct.  25,  at  oo'days  "from 
date,  on  A.  G.  Ldwanls  &  Sons,  payable  at  St.  Louis,  $785.95  (grace). 

/^e-w/i^.  Poor  &-  Co.:  #4.  note  signed  by  Hrown.  Durrell  &  Co..  endorsed  by  John  Munroe  &  Co..  payable 
at  National  Hank  of  Redemption.  Boston,  dated  Aug.  31.  at  60  days.  $25260.75  55  draft  for  $4000  it  to 
days'  sight  on  Rice,  .Sti.x  &  Co.,  accepted,  payable  at  St.  Louis.  Sep.  25  (grace). . .  46.  Burden.  Smith&Co"^ 
note  for  $1345.29.  endorsed  by  Robert  H.  Plant,  payable  at  .Macon,  (ia..  dated  Sep.  25.  at  90  .lavs  (.^race) 

Nnv  Vorl-  Rubber  Co  :  J  7,  their  draft  on  McNear  Belting  Co..  Oakland,  Cal..  for  $10000  'dated  Autr  "4 
at  3  months  from  date ....%%,  Raymond  Lead  Co.'s  note  dated  Aug.  28.  at  90  days,  endorsed  by  N.  K  Fairb'.nk' 
payable  at  Chicago.  $650. . .  .jjQ.  t'^eir  draft  at  sight  dated  to-day  on  Mulholland  Hardware  Co  Kansas  City" 
Mo.,  for  $3175.  (Sight  drafts  to  be  forwarded  for  collection  may  be  tickleri/.ed  as  due  at  the  date  of  the 
following  period,  or  30  days  from  die  current  date,    b,  bushiess  the  time  of  the  returns  would  be  estimated  ) 

United  States  Uathcr  Co.:  %  10.  note  signed  by  J.  A.Willard.  endorsed  by  Harvard  Mf-.  Co  dated  .Sep  "6 
at  4  months,  for  $17500.  payable  at  Granite  Falls,  Minn,  (grace). . .  .Jf  ,1.  sight  draft  for  $1  r2.5o  on  (]  H  Allen 
Co..  Salem.  Mass.  (gr.nce). . . .%  12,  their  draft  on  Simmons  Hardware  Co.,  at  90  days'  sight,  accepted,  payable 
at  St.  Louis.  Sep.  26,  $6490.25  (grace).  i       '  1    / 

National  Hank  of  Redemption,  Boston:  %xi,  note  signe.I  by  Col,  n  &  Ber.  endorsed  by  Walker-S  iwyer- 
Stetson  Co..  payable  at  New  Orleans.  La.,  dated  July  26.  at  3  months,  for  $13500  (grace)         %  14  dralt  dr  uvn 
by  Brown.  Durrell  &  Co..  on  John  Wanamaker.  City,  dated  Oct.  i.  at  30  days'  sight,  for  $5000  ..ccepled  Oct  - 
payable  at  Astor  Place  Bank   ...315.  Mills  &  Gibb's  note  at  90  days  from  Sep.  2.  favor  Riverside  Worsted 
Mills,  for  $2317  35.  payable  at  464  Broadway. 

First  National,  Chica^^o :  %  16.  note  signed  by  Acker.  Merrall  &  Condit.  City,  favor  Durand  &  Rasper  Co 
dated  Oct.  I.  at  31  days.  $17240   ...517.  <iraft  at  60  <lays'  sight,  accepted  Sep.  2.  by  Morton.  Bliss  &  Co..  payable 
at  this  bank.  $38500.  . . .%  18.  note  signed  by  E.  R.  Durkee  &  Co..  City,  favor  H.  Botsford  &  Co.   dated  .Sep  -> 
at  90  days,  p.iyahle  at  this  hank.  $5000.      .%  ig.  draft  at  25  days  from  Oct.  2  on  Douglas  &  Jordan.  Providence* 
R.  I.,  drawn  by  Armour  &  Co..  for  $12747.95  (grace). 

Bank  of  California.  San  Francisco:  %2o,  note  signed  by  E.  R.  Durkee  &  Co..  Citv.  favor  L.  A  Olive 
Growers  Assn..  dated  July  i.  at  4  months,  for  $7270.95.  ■  •  .^21.  draft  drawn  by  James  IF  P.eatty  on  Hascall 
Steam  Generator  Co..  at  90  days' sight,  accepted  Sep.  2.  payable  at  Chase.  National  Bank.  City   $93867 
322.  George  A.  Stone's  note,  favor  Bank  of  Selma,  dated  Apr.  28,  at  6  months,  payable  at  Syracuse   N   y' 
$25000.  •'  ,  -  .     ., 

Boatmen's  Bank,  St.  Uuis :  JJ23.  F.  W.  Humphrey  &  Co.'s  60-day  draft  on  Milmine.  Bodman  &  Co  for 
$47500.  accepted  Sep.  2.  payable  at  Seaboard  National  Bank.  City . . .  .•$.  24.  note  signed  by  Bliss.  Fabyan  &  Co 
favor  J.  Kennard  &  Sons,  dated  Aug.  31.  at  4  months.  pay..ble  at  Central  National  Bank.  City  $938  67         ^  ->=' 
Spencer  Optical  Co.'s  note,  favor  Burbank  &  Co..  for  $.975.  dated  Aug.  3.  at  90  days,  pay.i'ble  at  15  Maiden 

33 


BANK    BOOK-KEEPING 

Lane  City. .     826,  note  signed  i)y  Thos.  Coggeshali.  payable  at  Newport.  R.  I.,  endorsed  by  William  C.iUnn 
dated  Aug.  29.  at  60  days.  $4750  (grace).  '     ' 

Sun.lru-s .-  For  credit  of  E//ioiL.  Butler-t  27.  his  draft  at  60  days  from  Sep.  23.  on  G.  H.  Hobson.  Pueblo 
Colo.,  for  $4500  (grace). . .  .For  E.  R.  Durkee  Sr-  Co.-t  2S.  their  draft  at  90  days  from  Sep.  24.  on  Gaylord' 
Blessing  A:  Co..  New  Orleans,  for  $,o5c»  (grace)  ...G.C.  Hav.n-'^  29.  note  signed  by  W.  R.  Drew,  payabl^ 
at  f  y'""";^^'  ^'^f -.  ;'f  ed  Aug.  30.  at  2  months.  $520.  Lerd  ^  Taylor-ty>,  M.  H.Thompson  &  Co.'s  note 
endorsed  by  ED.  Waldron.  payable  at  Elgin.  111.,  dated  Aug.  3..  at  90  days.  $3000. . .  .Aforton,  Bliss  ^  Co.- 

Ir^';^   c""  ""'  ^       '^^'  ^^^^'^  ^^P-  ^^'  **"  J°^"  ^^'^'^^  ^  ^"-  Louisville.  Ky..  for  $1672094  (grace) 

H.  H.  Stuasey-t  32.  note  signed  by  John  W.  Turner,  payable  at  American  E.xchange  Bank.  St.  Louis,  dated 
Sep.  9.  at  45  days.  $18000. .. .  SMnwaj^  &»  Sons-$  33.  Lyon  &  Healy's  note,  endorsed  by  John  C.  Black,  payable 
at  Contmental  National  Bank.  Chicago,  dated  July  3..  at  90  days.  $37500. .  .  .  tV.sf^n  Electric  a._t  34.  their 

If  T  Yrf''\^T'  ^-  ^-  ^°-  ^^''''''"'  '^^"-  ^"^^^'  A"&-  '°-  ^»  75  clays  from  date.  $,,550  (grace) 
Allan/a  NaUonal-^  35.  draft  drawn  by  W.  G.  Solomon  &  Co..  Macon.  Ga..  on  John  Dunn.  Jr..  Syracuse  N  Y 
dated  Aug.  29.  at  3  months  after  date.  $4275.50.  Detroit  National-t  3b,  note  signed  by  R.  H.  Macy  &  Co  ' 
payable  at  Bank  of  the  MetroiK,lis.  City,  favor  Detroit  Stove  Works,  dated  Sep.  ..  at  2  months.  $2500  ' 
Nuttonal  Bank  of  Kansas  City-tyj,  note  favor  of  John  A.  Holmes  &  Co..  signed  by  F.  R.  Cordly.  payable 
at  Lowell.  Mass.  dated  Aug.  30.  at  2  months.  $,7400. .. . Hibernia  National-^  38.  draft  drawn  by  Wm.  J.  Knox 
on  rhomas  Woolen  Co.  Woonsocket.  R.  I.,  dated  Aug.  27.  at  90  days  from  date.  $.9250. . .  .The  above  items 
will  now  be  entered  in  the  collection  tickler. 

The  following  items  have  been  forwarded  for  collection  and  should  be  entered  in  the  remittance  register 
under  the  title  of  the  banks  specified  :  National  Bank  of  Redemption,  Boston.  Collections  5  4  3  11   5  -9  «  37 
First  National,  Chicago,  Collections  tLt  33:  Discount  t  I5«62. . .   Boatmen's  Bank.  St.  il«,«».  Collections 
^5.  t  32:  Discount  t  15166. . .   Bank  of  California,  San  Francisco,  Discount  t  15165. . . .  Commercial  Bank 
Syracuse   Collection  j{  22 . . .  .National  Bank  of  Commerce.  Kansas  City.  Collections  5  9.  5  34        Hibernia 
National,  New  Orleans.  Collection  jj  13 . . . .  Industrial  Trust  Co..  Providence,  Collections  S  19.  5  26. 

74.     Second  Vcnod^—Novetnber  /—Time  items  were  received  for  collection  as  follows  : 

^«/*/<^  Dunton  &-  Co.:  ^39.  note  signed  by  J.  Albert  Walker,  endorsed  by  Richardson.  Hill  &  Co 
payable  at  National  Bank  of  Redemption.  Boston,  dated  Sep.  27.  at  60  days.  $24719.42. . .  840.  their  draft  on 
Marks.  Rothenberg  &  Co..  at  90  days'  sight,  accepted  Sep.  24.  payable  at  Meridian.  Miss..  $4892.75  (grace) 
»4«.  Lewis  &  Gregory's  note,  endorsed  by  G.  Gunby  Jordan,  for  $1752.90.  payable  at  Columbus.  Ga..  daied 
Aug.  25.  at  3  months  (grace). 

Denny  Hwr  &-  Co. :  J»42.  their  draft  on  Sachs  Bros.  &  Co..  for  $1 1200.  dated  Sep.  23.  at  3  months  from 
date,  payable  at  San  Francisco. Cal. . .  .543.  Johnson.  Price  &  Co.s  note,  dated  Sep  28.  at  90  days,  endorsed  by 
J.  Ogden  Armour,  payable  at  Chicago.  $37500.  .544.  their  <lraft  at  90  days'  sight  on  Clements  &  Chaffee. 
Topeka,  Kan.,  dated  to-day,  for  $2957.85. 

New  York  Rubber  Co. :  J45.  note  signed  byGriswold  &  Son.  endorsed  by  J.  R.  Walsh,  payable  at  Chicajro 
dated  July  28   at  4  months.  $9381.27   ...346.  their  draft  at  60  days' sight  on  G.  Lombard  &  Co..  accepted 
Oct.  25.  payable  at  First  National  Bank.  Los  Angeles.  Cal..  $,3260  . .  .tAJ.  their  draft  dated  Nov.  24.  at  30 
days  from  date,  on  George  S.  Myers,  payable  at  St.  Louis,  $4750  (grace) 

United  States  Leather  Co. :  548.  note  signed  by  Jno.  S.  Pillsbury.  dated  Sep.  25.  at  3  months,  for  $40000 
payable  at  Minneapolis.  Minn,  (grace). .  .tA9.  their  draft  on  Swewmeyer  &  Co..  Hannibal,  Mo.,  at  60  days- 
sight,  accepted  Oct.  25.  $3175  (grace)   ...  5  50. 90.day  draft  on  A.  M.  Hunter.  Lowell.  Mass..  for  $945.70  (grace) 

National  Bank  of  Redemption,  Boston  .•  JJ  5,.  note  signed  by  Tefft.  Weller  &  Co..  City,  favor  Boston  Dry 
GoodsCo    dated  Oct.  2.  at  60  days.  $,5900.      .852.  draft  drawn  by  Chandler  &  Co..  on  Kahn  &  Frank,  at  00 
days  sight   payable  at  Seaboard  National.  City,  accepted  Oct.  2.  $20000. . .  .853.  draft  at  55  days  from  Oct  2 
drawn  by  Langley.  Burr  &  Co.  on  Geo.  R.  Smith.  Woonsocket.  R.  I..  $9747.50  (grace). 

First  National.   Chicago:  354.  note  signed   by  Morton.  Bliss  &  Co..  City,  favor  Equitable  Trust  Co 
dated  Aug.  I   at  4  months.  $50000,  payable  at  this  bank ...  .5  55.  draft  drawn  by  Dolliver  &  Co..  on  Milmine.' 
bodman  &  Co..  City,   at  90  days'  sight,  accepted   Oct.  2.   payable   at  Seaboard    National.  $18750        856 
M.  Hume  s  note,  favor  Bank  of  Marysville.  dated  May  29.  at  6  months,  payable  at  Oswego.  N.  Y..  $75000     ' 

Bank  of  California,  San  Francisco:  857.  A.  J.  Crosby's  6o.day  draft  on  E.  R.  Durkee  &  Co..  City  for 
$9400.  accepted  Oct.  2.  payable  at  this  bank ...  8  58.  note  signed  by  Francis  H.  Leggett  &  Co..  City,  favor 

w  n'"'  ?,'■"''""  *  ?••  ''"''"•'  ^''-  '•  "'  90  days,  payable  at  Central  National.  $43200. .     159.  note  signed  by 
William  G.lpin.  payable  at  Providence.  R.  I.,  dated  Sep.  24.  at  60  days.  $962.75  (grace). 

Boatmen's  Bank,  St.  Louis:  860.  note  signed  by  Langley.  Burr  &  Co..  favor  Rice.  Stix  &  Co..  payable 
at  Boston  Mass..  dated  Aug.  27.  at  4  months.  $22600. ..  .861.  draft  drawn  by  King.  Brinsmade  &  Co.  on 
tdward  Lllis.  dated  Sep.  24.  at  60  days'  sight,  accepted  Sep.  30.  payable  at  Cortland.  N.  Y..  $2438.25... 

34 


THE    COLLECTION    CLERK 

862.  John  McCroden  &  Co.'s  note,  favor  J.  Y.  Lockwood.  dated  Sep.  i.  at  3  months,  payable  at  Oriental  Bank, 
City.  $7948.50. 

Sundries:  IVesicrn  Electric  C<>.— 863.  their  draft  on  Bangor  Telephone  Co..  dated  Sep.  24.  at  3  months 
after  date,  payable  at  Bangor.  Me..  $17800  (grace). .  ..Steinway  £r*  Sons—He^,  A.  H.  Cha.ses  note,  endorsed 
by  -Mark  Hanna.  payable  at  Norwalk,  O..  dated  Aug.  28.  at  90  days,  $60000 ....  Elliot  L.  Butler— $6$.  his 
draft  at  60  days  from  Oct.  23,  on  August  Fast.  Silverton,  Colo.,  $3600  (grace). .  ..Lord  &-  Taylor— *(Jb.  Merk 
&  Son's  note,  endorsed  by  G.  M.  Springman,  payable  at  Waukesha,  Wis.,  dated  Sep.  26,  at  3  months.  $17540 
...H.H.  Swasey-tdy.  note  signed  by  John  White  &  Co.,  Louisville.  Ky.,  dated  Oct.  27.  at  30  days.  $25oco 
(grace).... //ibernia  National— ^  68.  note  signed  by  J.  Drowd.  payable  at  Syracuse.  N.  Y.,  dated  July  27,  at 
5  months.  $15000.  ..Detroit  National— ^6^,  note  signed  by  Siegel.  Cooper  &  Co.,  favor  Compton  Refri<rerator 
Co.,  payable  at  Fourth  National.  City,  dated  Sep.  2.  at  90  days,  $8400.  .  .  National  Bank  of  Kansas  City- 
870.  90-day  draft  drawn  by  Bullene.  Emory.  Moore  &  Co..  on  Owen  Moore  &  Co..  accepted  Oct.  26  payable 
at  Portland,  Me.,  $1700  (grace). 

The  following  items  have  been  forwarded  for  collection  to  the  banks  specified:    Bank  of  Redemption 
Collection  839:   Discount  8  15164     • -/''W/  National.  Chicago,  Collections  88,  330,  845         Boatmen's    St 
Louis,  Discount  815188. . .  ./Ai«-t  of  California,  Collections  82.  tl ...  .Commercial.  Syracuse,  Collections 
J{3S.  S56.  561;  Discount  %\S\6\ ...  .Industrial  Trust  G;..  Collections  838.  853,  ^l^. ..  .Denver  National 
Collection  t^l ...  .Second  National.   Toleao,  Collection  ^6^ ...  .Atlanta  National,  Collection  841..      Bank 
of  Kentucky,  Louisville,  Collection  %6t ...  .Galveston   National,   Discount  %\s\(&. ..  .Fidelity   Trust  Co 
Otnaha,  Discount  8  «5>79-       Tacoma  National,  Discount  8  15180. . .   Detroit  National,  Discount  8  15185. 

75.     Third  Period,— December  /—Time  items  were  received  for  collection  as  follows: 

Bulkley,  Dunton  ^  Co.:  371.  draft  dated  Nov.  25.  at  30  days  from  date,  drawn  on  A.  G.  Edwards  & 
Sons,  payable  at  St.  Louis.  $7217.55  (grace)       .372.  draft  at  30  days'  sight  on  F.  Cox  &  Co..  for  $4000  accepted 
Nov.  23.  payable  at  Sacramento.  Cal.  . .  .373.  note  signed  by  Jacob  Meyer  &  Bro..  endorsed  by  Edson   Keith 
payable  at  Chicago,  dated  Oct.  26.  at  2  months.  $9360. 

Denny,  Poor  &*  Co. :  3  74.  Burden.  Smith  &  Co.'s  note  for  $2890.  endorsed  by  R.  H.  Plant,  payable  at  Macon 
Ga..  dated  Oct.  26.  at  60  days  (grace). ..  .3  75.  their  draft  at  30  days'  sight  on  Rice.  Stix  &  Co..  accepted 
Nov.  25.  payable  at  St.  Louis.  $50000  (grace). ..  .3  76.  note  signed  by  Brown.   Durrell  &  Co..  endorsed  by 
Kidder.  Peabody  &  Co..  payable  at  National  Bank  of  the  Republic.  Boston,  dated  Sep.  30.  at  90  days   $37500 

New  York  Rubber  Co. :  877.  Raymond  Lead  Co.'s  note,  endorsed  by  N.  K.  Fairbank.  payable  at  Chica-o 
dated  Oct.  27.  at  90  days.  $11950.  878.  their  draft  at  30  days  from  Nov.  23.  on  Hecla  Electric  Li^ht  Co  ' 
payable  at  Fresno.  Cal.,  $3245.  .  379.  "ote  signed  by  Crosby  Machine  Co.,  endorsed  by  James  L.  Lombard' 
dated  Aug.  22,  at  120  days,  payable  at  Kansas  City.  Mo.,  $41263.18  (grace). 

United  States  Leather  Co.  :  380,  their  draft  on  Plankington  Mfg.  Co..  at  60  days'  sight,  accepted  Oct  -4 
payable  at  St.  Louis,  $17850  (grace).  ..  .3  81,  note  signed  by  G.  H.  Allen  Co.,  Salem,  Mass..  endorsed  by' 
Edward  D.  Ropes  dated  Aug.  27.  at  4  months.  $3750. ..  3  82,  note  signed  by  J.  A.  Willard,  endorsed  by 
T.  B.  Casey,  payable  at  Minneapolis.  Minn.,  dated  Nov.  17,  at  90  days.  $25000  (<rrace) 

National  Bank  of  Redemption.  Boston :  3  83.  Catlin  &  Co.'s  note  at  90  days"  from*  Oct.  2.  favor  Shawmut 
Knitting  Co    payable  at  Central  National.  City,  $4691.80. .  .  .384.  draft  drawn  by  Walker-Stetson-Sawyer  Co 
at  90  days  from  Nov.  28,  on  John  Wanamaker.  payable  at  Broadway  and  9th  St.,  City,  $50000        885   note 
signed  by  Cohn  &  Ber,  endorsed  by  Chas.  E.  Conant  &  Co.,  payable  at  New  Orleans,  La.,  dated  Sen   -4  'at  00 
days.  $31500  (grace).  '  — *'       ^ 

First  National.   Chicago:  386.  note  signed   by  E.  R.  Durkee  &  Co..  favor  H.  Botsford  &  Co     dated 
Nov.  26  at  60  days,  payable  at  this  bank,  $4300   .  .  .387,  draft  at  60  days'  sight,  drawn  by  Chase  Eleva'tor  Co 
on  Knickerl>ocker  Trust  Co.,  accepted  Nov.  1,  payable  at  this  bank.  $75000. . .  588,  note  signed  by  American 
Grocery  Co..  favor  Durand  &  Kasper  Co..  dated  Aug.  1.  at  4  months,  payable  at  Franklin  National    City 
9701 0.50.  '        ■" 

Bank  of  California.  San  Francisco:  389,  draft  drawn  by  Sunset  Commission  Co.  on  Seville  Packin.r  Co 
,'\  ,^'P-  '^'  ^"  ^J'^y*'  ^'k'^»'  ^'^^I*^"'  Oct.  2.  payable  at  77  Hudson  St.,  City,  $12000.  .  .  .390.  .Iraft  drawn 
by  Sibley  Shipping  Co.  on  E.  R.  Durkee  &  Co.,  dated  Aug.  23,  at  90  days'  sight,  accepted  SepT 2,  payable  at 
this  bank.  $^40.. ^.891.  Daniel  Lepard's  note,  favor  Royal  C.  Taft.  dated  June  25.  at  6  months   payable  a 
Providence.  R.  I..  $20000  (grace).  .  j    7      ^  .»i 

Boatmen's  Bank.  St  Louis :  892.  note  signed  by  Goo.Iyear  Rubber  Co..  favor  J.  Kennard  &  Sons  dated 
Aug.  I  at  4  months.  p.-xyable  at  Hanover  National.  City.  $25000. .  .  .393.  draft  drawn  by  Walker  Hill  on  Frank 
E.  Richmond,  at  60  days  sight,  accepted  Nov.  i.  payable  at  Merchants'  National.  Providence    R    I     $q76->  co 

Sundries:  Elliot  L  Butler-t^,  his  draft  at  60  days  from  Oct.  23  on  Charles  Henkel.  Pueblo  Colo  " 
$17300  (grace).  ...ER.  Durkee  &-  O.-895.  their  draft  at  90  days  from  Nov.  27  on  Max  Schwabacher  New 
Orleans.  La..  $2951.75  (grace).    .  .Lord  &*  Taylor-ig6,  Clarke  &  Co.'s  note,  endorsed  by  Martin  Kin.^man 

35 


BANK    BOOK-KEEPING 

payahle.at  Peoria.  III.,  dated  Aug.  26.  at  4  months.  $8145.20  . .  Morton,  Bliss  &-  Co.-tgy,  their  draft  at  00 

So»s-t9&.  C.  F.  Summys  note,  endorsed   by  J.  J.  Haltstaedt.  payable  at  First  National.  Chicago    dated 
Nov.  26.  at  30  days.  $.2500  . . . .  Wr./^«  E/,ctrtc  Co.-t^,  their  draft  on  Eimwoo<l   Electric   Light  Co 
Lawrence   Kan    dated  Nov.  24.  at  30  days  from  date.  $.9263.75  (grace). ..  .^//a«/.,  Naiiona/-t  loo.  drall 

tlZ.^  ^n,f^''.^'  ^  '^'^''  ''^'^  ""  "'"°  ^"^''"y  ^"'  "*^"P'*^^  0^»-  ^»-  P^y^»>'«  *t  Syracuse,  N.  Y.. 
!n  r  r  ^  ?r  ^::^''""''-«  •°''  ^'^^'  '^-'-<^  Nov.  28.  drawn  by  Berkey  &  Gay  Co..  at  30  days'  sighi 
/T  A  ^z^  ^''"' JE"-  ^'^y-  ^c«P»ed  to-day  upon  presentment,  payable  at  this  bank.  $63850.94  A'.,rio»a/ 
Bank  0/ Kansas  Ctty-^  .02.  note  favor  Sembrich  &  Co..  signed  by  Francis  Staley.  payable  a  R^-kport  mIss 
dated  July  26.  at  5  months.  $4370.85. .  Hiternia  National-^  ,03.  draft  at  30  days'sight.  drawnl^y  Wm  j" 
Knox  on  Lord  &  Taylor.  C.ty.  accepted  to-day  upon  presentment,  payable  at  this  bank.  $.4190  5,04  sieht 
^7816.4^'""     '  '  •'"•  °"  """'""''  ""''^  ''"•  '^  ^'--^-'-^'  Pay^-^t  to  be  adJi^d  by  tekgr'ph! 

^nf.  I«?  i^""""'"^  i^-""/  ^r."  ''^"  fo'^w^'-ded  for  collection  :  Bank  of  Redemption,  Collections  «  60.  t  63 
ll   I,      !  '°'*.  •         '^'■'•"'*  ^^^'l'^^'*""^  ««.  »66.  jJ73.  JJ96.  #98.  - .  .Boat,nrn's.  St.  Louis,  Collections 

«3.  » .2.  :U7.  5J49.  :I7..  Jt7S.  J$8o. ..  .  /?a„.t  ./  CaU/ornia,  Collections  ^,43.  546.  »72.  iJ78  • .      cV^r^^'r/ 
5^ra.«...  Collectu^ns  568^^.00;   Discounts  5,5.76.  tM^o^ ...   National  pJnt  o/L.:nlrce    ^^nsas^^^^^ 
t  o.    rr  ^/?'  ^99-^..^'W.    AV«,(;.W..  Collections  528.  385 . . . .  A./^/././  7V«./o..  CollectToi;^; 
It'  ^93 -.^'"«^'''' -y''''""''^- Collections  365.  594:   Discount  3i5l77...   -///..«/«  AW/V,W.  Collections  «6 
340    374;  Discounts  3.5167.   3.5.9^.       ^-«>t  ./  A-entuciy,   Collections  33«.   397:    Di.scount  3.5.99       ' 

*^^T"  ■  ^v    0":       rL  ^\'  ^""''"""  '^^         ''"^"'"^'"  ^"'''"<  ^^''">^'■«C/^«.  A  C.  Discount  3.5.8. 
. .  ..Iron  Ctty  National,  Pittsburg,  Discount  3  15.87.  » 'S'oi 

76'     Fourth  Period.— />>^r^,«^^r  j/-Time  items  were  received  for  collection  as  follows  • 

Bulkley  Dunton  &-  Co. .-  3  .05.  their  draft  at  30  days'  sight  on  Aarup  &  Sternberg,  Vicksburg  Miss    to 

?o.:Xmi:g^h::.  A^^^r^'  "^"^"'  ^'^^'-^^  '  •"• '-' '-'  ^^  ^  ^^^^  ^^^  ^-  -  -'^o^  ^^p^^ 

Denny,  Poor  &-  Co. .-  3  .07.  their  draft  on  Sachs  Bros.  &  Co..  San  Francisco.  Cal.,  at  30  days  from  date 
fdvLtd  b-Vr^"'  f  ;  ^^l^^^'^"^'  -  ^-^  "-^--".  Wichita.  Kan.,  with  i^struaionf  to  hav^mem 

:!u:i^^r^!:::^^^^^^ '  '°^'  -^^^  '^-^^  '^  "•  '•  '• ""-'  *  ^-  ^^^^^  ^-  -^  ^  ^^>^'  p'^^^'^ 

A^^c/  r^r>t  PuAder  Co.  :  3  ,  .0.  note  signed  by  I.  B.  Kleinert  Rubber  Co.,  dated  Oct.  31.  at  2  months  payable 
at  725  ^---d-y.  S.3450     .  .3  ....  note  signed  by  Allerton  &  Aiken,  endorsed  by  Senauer  &  Co    payab  e  a^ 

.  "cZ^^saI^x  S-.  s.:38^2t"'  '"^^-^^  •  • '  •  "• "" '-' ''  -  ''^' '-- ''-  ^^'^  -  ^^-'-^ 

i/«;V^./  5/^/^rx  Z^«M.r  a. .-  3  .  .3.  their  sight  draft  on  A.  M.  Hunter.  Lowell,  Mass..  $3275  90  ferace) 
3  ..4,  note  s.gned  by  Jno^S   Piilsbury.  dated  Dec.  ,6.  at  90  days.  $35000.  payable  at  St.  Paul.  M^„^(g race)    ' 
National  Bank  0/ Peremption,  Boston:  3.15.  note  signed  by  Mitchell-Vance  Co..  favor  Central  Brass 

sL  on  G  cV'  'r  ''i  '^'^'^  ''  ^'"'  °'  ^"^  ^°'''^'  ^*76oo. . .  .3  ..6.  sight  draft  drawn  by  Ani^h  & 
S.,ns  on  G.  G.  Haven  Cty.  $374.9.82 ...  .3  .  .7.  draft  drawn  by  Kendall.  Hooper  &  Co.  on  H-O  Company  at7 
dated  Dec.  29.  at  60  days'  sight  for  acceptance  and  return.  $24000  company,  c.ty, 

f'^'^  ^''''""^\  C^'^'^/ro:  3.. 8.  note  signed  by  Lazard  Fr^res.  City,  favor  Equitable  Trust  Co    Chicago 

Co  on  A?  !'a  '^y^' P^>'^^'*=  ^'  ^°-'»^  National.  City.  $75000. . .  .3  .  .9.  sight'draft  drawn  by  irmrr'& 
Co.  on  Anglo-American  Provision  Co..  . . ,  Produce  Exchange.  City.  $5328.  09 

Bank  of  California,  San  Francisco:  3,20.  draft  drawn  by  A.  J.  Crosby  on  Enrico  Casabianca  28^ 
Washington  St.  dated  Dec.  2..  at  30  days'  sight.  $39..74.  •  •  .3  .2..  note 'signed  by  David  Trumm  tyaNcI^ 
Providence.  R.  I.,  dated  Dec.  .3.  at  30  days.  $9275  (grace).  '  ^^  *^ 

Boatmen's  Bank  St.  Louis:  3.22.  note  signed  by  Saraband  &  Galop,  favor  Templeton  Strong  payable 

bv  OnTlT";.  ''^^t  r^'l  ""T-  '°'  ''  '  "°"*'"-  ^^'"^i- . .  .5  .23.  sight  draft  on  Eclipse^Mfg.  Co..  CUy 'drawn 
by  Opdyke  Lean  &  Co..  $948.25. .  3  .24.  draft  drawn  by  Fergusun  &  Moffat  on  Splncer  Optical  Co  dated 
Nov.  ..at  60  days  from  date,  accepted,  payable  at  Nassau  Bank.  City.  $7382.95. .  ^.25  note  sL'ne7bv  rohn 
McCroden   favor  Sansom  Pearl  Works,  payable  at  206  Centre  St..  datid  Sc.  .''at  30  da^;.  $.I48  50        '  ^ 

Sundries:    G.  IV.  Adams-t  126.  his  draft   at  30  days   from   this  date  on   Bruce    Whitcomb  &  Co 
Shenandoah  lovv^.  $5000  (grace). .      y.  Seisin  Tait-^,  ,27.  his  draft  a,  sight  on  HerscLy  &  wL   Lule' 

K.  I..  Dec.  28.  at  30  days  sight,  on  Aries  Bros..  Altoona.  Pa..  $9400        National  Lafayette    Cincinnati 

days  sight.  SI.OOO....IKF.  Wakeman-t  .30.  his  draft  at  sight  on  Mankato  Mortgage  Co..  Mankato.  Minn.. 


THE    COLLECTION    CLERK 
requesting  advice  of  payment  by  telegraph,  no  protest.  $25000  (grace)   . . .  Columbia  National-t  .3..  draft  at 

W6^,«  u  ?•  ''';;"  "tT  *  ^°'  ^''^'  ''■"""  ^y  VVoodward  &  Lathrop.  for  acceptance  and  return. 
$4936.28. . .  .Morton,  Bliss  &-  Co.-t  132.  their  draft  at  sight  on  Charles  E.  Slocum.  Defiance.  O..  for  immediate 
returns,  no  protest,  $35000. 

^  .,7*'^  following  items  have  been  forwarded  for  collection  :  Bank  of  Redemption.  Collection  3  .,3;  Discount 
3.5.94..../>r./.  Chicago,  Collections  t77.  ^  ux ...  .Boatmen's,  St.  Louis.  Discount  3  15200. . .  .^«>t  ./ 
?o,nZrc'l'cTT"::  i'°^'  IV'  ^^^""^^rcial,    Syracuse.    Discount    3  .5207  ....  National   Bank  of 

C..«A«.rr.  Collecuon  3  .08  ..Hibernia  National,  Collection  3  .05. . .  .Industrial  Trust  Co.,  Collection  3  J; 
ilH     f  V^T\    -1^  National.   Toledo.  Collection   >i,  m ....  Atlanta   National,  Collection  3  .c^. . . 

Bank  of  Kentucky.   Discount  3.5.86    ...  Galveston   National.   Discount  3  .5,78  .... />V/..///y   Trust   Co 
Co  lection  txzt        Tacoma  National.  Collection  3.27.  ...5/.  Paul  Trust  Co..  Collections  310.  3.30        Iron 
City  Aational.  Collection  3 128. .  ..Merchants'  State.  Fargo.  Discount  3 .52.6. 


37 


ti 


CHAPTHk  VI. 
THE    THIRD    TELLER. 

77.  The  province  of  the  third  or  note  teller  is  not  easily  defined,  owing  to  the  wide  difference 
of  custom  among  banks  as  to  the  duties  which  he  shall  perf..rm.     In  general  he  is  required  to 
present  such  matured  paper— notes,  ilrafts,  acceptances,  cou|>ons,  etc.— as  are  i>ayable  in  the  city 
From  the  discount  clerk  he  receives  the  items  jxiyable  on  the  city  discount  tickler,  and  from  the 
collection  clerk  those  appearing  on  the  collection  tickler. 

78.  The  Messengers.—  r he  third  teller  has  charge  of  the  messengers,  to  each  of  whom  he 
assigns  a  particular  route,  and  who  present  for  payment  «.r  acceptance  such  notes,  drafts,  etc.,  as 
may  be  allotte.l  to  them.  A  full  description  of  the  paj^er  and  its  place  of  payment  is  recorded  in  a 
"route-book."  In  case  of  non-payment,  a  corner  of  the  pai>er  is  turned  down  and  the  messenger 
records  thereon  such  reasons  as  may  be  given  for  refusal  ui>on  presentment.  Fa|)er  payable  at  a 
bank  is  usually  certified  by  the  bank,  and  that  payable  by  firms  and  individuals  is  ordinarily  accepted 
payable  at  a  specified  bank  and  afterwards  certified  that  the  item  may  be  returned  and  sent  through 
the  clearing-house  uixm  the  day  following.  This  plan  minimizes  the  amount  of  currency  to  l)e 
earned  by  the  messengers,  as  the  returns  to  the  note  teller  must  l>e  in  money  or  certified  items.  A 
column  is  provided  in  the  route-lK)ok  for  entering  the  clearing-house  numlier  of  checks  which  have 
been  received,  cash  payments  being  indicated  by  a  dash  or  similar  symbf»l. 

79.  Certificates  of  Deposit.— Certificates  of  de|X)sit  are  issued  to  such  persons  as  do  not 
intend  to  l>ecome  [^rnianent  dealers,  and  do  not  care  to  draw  checks  against  the  amount  which 
they  desire  to  deposit.  Interest  may  or  may  n<.t  be  allowed,  according  to  circumstances.  It  is 
customary  for  the  third  teller  to  issue  these  certificates,  though  the  receiving  teller  performs  this 
duty  in  some  instances.  The  signature  of  the  i)erson  is  generally  written  upon  the  stub  of  the 
certificate  in  the  certificate  of  deposit  book,  that  careful  comparison  may  be  made  both  of  the 
signature  and  the  amount  when  presented  for  payment. 


FORM    OF   CERTIFICATE   OF    DEPOSIT. 

80.     Customs  Checks.- Another  important  feature  of  the  third  teller's  work  in  custom-house 
centers  is  the  provision  for  the  payment  ..f  tluties  by  dealers.     The  Treasury  Department  requires 

38 


THE    THIRD    TELLER 

duties  to  be  paid  in  coin,  coin  certificates,  or  Treasury  notes.  To  obviate  the  inconvenience  of 
this  re<iuirement,  an  arrangement  is  made  with  the  Assistant  Treasurer  by  which  the  teller  sends  to 
the  subireasury  each  morning  a  uniform  deposit,  for  instance,  $20000,  which  amount  is  to  be  known 
as  a  "Customs  Fund  "  deposit.  For  this  amount  the  Assistant  Treasurer  issues  two  receipts;  one 
of  which  is  held  by  the  bank,  the  other  being  sent  to  the  custom-house. 


•1&._398 


CLEARING  HOrrSE  X9  90 


$/^^ 


>e>o 


%-£ti. 


THItr 


Ctshier 


FORM    OF    CUSTOMS  CHECK. 

When  the  dealer  desires  to  pay  duties  he  draws  a  check  for  the  amount  and  sends  it  to  the 
bank.  Instead  of  paying  this  check  in  cash,  the  teller  draws  a  check  on  the  Assistant  Treasurer 
for  the  amount,  which  check  will  be  accepted  fnmi  the  importer  by  the  custom-house  officials  and 
returned  as  a  voucher  to  the  bank  next  day.  The  subtreasury  is  not  permitted  to  keep  any  part  of 
this  deposit  over  night,  and  at  the  end  of  the  day  the  Assistant  Treasurer  sends  his  check  for  the 
difference  l>etween  the  amount  deposited  and  the  a?;gregate  of  the  customs  checks  which  have  lieen 
presented  during  the  day.  This  Assistant  Treasurer's  check  can  be  again  deposited  at  the  sub- 
treasury  next  day,  together  with  enough  additional  funds  to  amount  to  $20000.  The  dealer's  checks 
are,  of  course,  charged  to  his  account  by  the  bookkeeper,  as  will  be  explained  hereafter. 

81.  Cashier's  Checks.— A  cashier's  check  differs  from  a  dealer's  check  simply  from  the  fact 
that  it  is  signed  by  the  cashier  of  the  bank  on  which  it  is  drawn.  This  distinction  need  not 
be  sjxjcified  were  it  not  necessary  to  emphasize  the  difference   between  a  cashier's  check  and  a 


^i 


^^ei^^m!»l^^ 


■^-^-m-v-eMt,^ 


OF  NEW  YORK 


C^W. 


YiX'fJ 


WU:£<£ 


<^ 


*Jc:r$eta/^^Jaffi>^^»yi«€i 


FORM    OF    cashier's   CHECK. 
39 


BANK    BOOK-KEKl'ING 

charge  ticket  issued  by  the  cashier  to  authorize  the  first  teller  to  pay  „u>ney.  Cashier's  checks  are 
usually  filled  out  by  the  third  teller  or  general  bookkeeper,  and  signed  by  the  cashier.  Payments 
of  salaries  and  general  expenses  are  paid  by  cashier's  checks  rather  than  by  tickets  to  first  teller 
the  advantage  arising  from  the  enforced  endorsement  of  cashier's  checks  which  serves  as  a 
rece.pt  of  payment.  For  small  items  of  expense  charge  tickets  are  signed  by  the  cashier  which 
authorize  the  first  teller  to  pay  the  amounts  s,>ecified  to  the  iH-arcr-usually  a  clerk  or  official  of  the 
bank^  Cas^h.er  s  checks  are  usually  paid  through  the  clearing-house  the  day  following  their  issue 
Most  New  \ork  banks  issue  cashier's  checks  instead  of  drafts  on  correspondents,  for  remitl 
tances  to  distant  points,  an.l,  inasmuch  as  exchange  on  New  York  is  usually  at  a  premium,  the 
propriety  of  this  course  is  apiiarent.  . 

8a.  Bank  DraftJU-Correspondents  who  keep  a  deposit  in  New  York  draw  drafts  against 
the  account  and  sell  to  their  dealers  or  others  for  making  payments  at  distant  points.  These 
drafts  sooner  or  later  are  forwarded  to  New  York,  and  in  most  cases  reach  the  bank  u,>on  which 
hey  are  drawn  through  the  clearing-house.  Correspondents  are  charged  with  drafts  in  essentially 
the  same  manner  as  resident  dealers  are  charged  with  checks-the  -draft"  in  this  instance  being 
in  reality  the  check  of  the  correspondent. 

New  York  banks  which  sell  exchange  on  other  cities  keep  a  deposit  at  those  cities      In  .«me 
cases  a  New  \ork  bank  may  draw  against  its  collection  account  and  advise  its  corresiwndent  of 
having  done  so,  and  in  other  cases  drafts  may  be  drawn  by  agreement  where  no  balance  is  kept 
but,  in  general,  when  drafts  are  drawn  upon  another  bank,  a  l>alance  is  kept  at  the  drawee  bank  for 
the  purpose  of  providing  funds  for  their  payment. 


FORM    or    BANK    DRAFT. 

83.  The  Debit  and  Credit  Books.— As  a  rule,  all  charge  and  credit  tickets,  letters,  or  other 
memoranda,  which  affect  the  general  ledger,  pass  through  this  de,>artment  before  reaching  the 
general  bookkeej^er.  Most  of  the  transactions  which  make  up  the  work  of  the  student  for  the 
remainder  of  this  period  should,  therefore,  proi>erly  ht  given  as  a  part  of  the  third  teller's  memo- 
randum  of  transactions.  To  preserve  the  simple  progression  of  the  student's  w..rk,  we  have  deviated 
from  that  plan  to  the  extent  of  reserving  all  memoranda  which  directly  concern  the  general  debit 
and  credit  l)ooks  f..r  enumeration  in  the  general  bookkeejier's  memorandum  of  transactions  under 
Chapter  VII. 

The  entries  which  follow  from  the  third  teller's  memorandum  of  transactions  are  to  be  made 
in   the   debit   and   credit   bwks   for   deaUrs.    banks,    and   collection   banks,   as  specified    in    the 

40 


/ 


/ 


THE    THIRD    TELLER 

memorandum,  the  aggregates  to  be  transferred  to  the  general  debit  and  credit  books,  as  will  be 
indicated  in  Chapter  VII. 

84.  The  Third  Teller's  Proof —We  present  but  a  single  proof  of  the  third  teller's  work  for 
this  period.  It  IS  customary,  however,  in  large  banks  to  prepare  two  proofs  daily  in  this  depart- 
nient-one  in  the  morning,  the  other  in  the  afternoon.  The  morning  proof  is  practically  a  proof  of 
the  mail  receipts  to  be  credited  to  corresi>ondents  and  depositors  out  of  town,  and  its  use  is  a 
matter  of  convenience.     The  afternoon,  or  final,  proof  includes  the  entire  transactions  of  the  day. 

1  he  sagacious  student,  however,  will  soon  perceive  the  iwssibilities  which  these  proofs  combine 
and  can  readily  modify  them  to  suit  his  purposes  should  he  be  called  ui«>n  to  devise  a  different 
system. 


THIRD    TELLER'S    PROOF. 


FIRST    PERIOD. 


October   2,  1897. 


1.    A-L    DEBITS 
M-Z 
BANKS 
COLLECTION    BANKS 

2.  GENERAL 

3.  EXCHANGES 
4-,    CASH 

5.  SECOND  TELLER 
e.  CASH  ITEMS 


1474.79  05 

237841  27 

238267  18 

26G868  46 

I023983  75 


573958 

305479 

186339 

SCO 


298371 7 


61 
32 
85 


48 


I 


1.  A-L  CREDITS 
M-Z 
BANKS 
COLLECTION  BANKS 

2.  GENERAL 

3.  EXCHANGES  FROM  C.  H. 

4.  FIRST  TELLER 

5.  SECOND  TELLER 

6.  CITY  OFFICE 


189181 

2503I0 

249151 

262725 

1539570 

222703 

76426 

1 79633 

14015 


2983717  48 


46 

43 

51 

38 

05 

83 

02 

22 

58 


The  third  teller's  proof  is  derived  from  the  aggregate  transactions  which  have  passed  through 
his  hands,  and  comprises  all  of  the  entries  in  the  general  debit  and  credit  books  up  to  the  i>oint  at 
which  the  totals  from  the  debit  and  credit  books  for  dealers  and  banks  are  tranijferred  at  the  end 
of  the  day. 

The  debit  side  exhibits: 

1.  Total  sums  debited  to  accounts  of  dealers,  banks,  and  collection  banks  from  general 
debit  book.  * 

2.  Items  charged  to  accounts  in  the  general  ledger. 

3.  Checks  and  drafts  received  by  the  note  teller  payable  through  the  clearing-house. 

4.  Bills  and  coin  received  during  the  day. 

5.  Remittances  from  collection  banks  transferred  to  second  teller  as  clearing-house  items  and 
exchange  deducted  from  deposit  tickets.  ' 

6.  City  office  items  which  have  not  been  collected  during  the  dav.  or  checks,  coui>ons  and 
other  Items  which  are  being  carried  over  for  payment  at  a  future  time. 

The  credit  side  consists  of: 

I.  Total  sums  credited  to  accounts  of  dealers,  banks,  and  collection  banks  from  the  general 
credit  book.  * 

3.     Items  credited  to  accounts  in  the  general  ledger. 

3.  Cashier's  checks,  certified  checks  on  this  bank,  and  other  items  which  were  received  from 
the  clearing-house,  and  have  been  included  in  the  general-ledger  debits  on  the  opposite  side. 

4.  Cashier's  checks,  certified  checks,  city  office  items,  and  charge  tickets  issued  by  the  third 
teller  which  have  been  |>aid  by  the  first  teller  during  the  day. 

5.  Foreign  office  items  transferred  from  the  second  teller,  to  be  sent  away  for  collection. 

6.  City  office  items  of  the  previous  day  which  have  been  paid  this  dav,  with  the  exception  of 
the  «'  Cash  Items  "  on  the  opposite  side. 

41 


BANK    BOOK-KEEPING 


MEMORANDUM   OF   TRANSACTIONS. 

85.     Fust  Period.— (9r/«»/>^r  ^-Accounts  should  be  opened  in  the  dealers'  ledgers,  creditine  each 
account  with  its  balance  as  given  below :  8      •  ^    K  cacn 

^•'"'T'  ^-^-^^^^'; A^lams,  $65720.18. .    .Chas.  H.  Baker.  $.7082.91 . . .  .Bulkley.  Dunton  &  Co..  $322700 

Elhot  L  Butler.  $4.800. ..  .William  Clark.  $967.-29. ..  .Cooper.  Hewitt  &  Co..  $210000. ..  .Denny    IW 
&  Co..  $.398.0.20. . . .  E.  R.   Durkee  &  Co..  $2.8022.62. . .  .Geo.  C.  Flint  Co..  $297329.8.         Gilbert    Manu- 
facturing Co..  $45400. . .   G.  G.  Haven.  $454768.45 ...  A.  Iselin.  Jr..  $325001.30. . . .  Edward  King.  $380000 
Knickerbocker  Trust  Co..  $.652406.95 ....  Lord  &  Taylor,  $92843.29.  j-»~-"  •  • 

Ledger,   M-Z-\\.    Maillard.    $94260.07  ....  Andrew    McLean    &    Co..  $125760  H     Mills    Treas 

S.8039..4.    .  .Morton.  Bliss  &  Co..  $399'27.27.  •  •  -J.  H.  Newman.  $,4220.25. . .  .New  York  Rubber  Co.'.  $.4198;; 

Otis    Brothers  &  Co..  $215700. ...  Pennsylvania  R.  R.  Co..  $4.2500. ..  .C.  H.  Pine.  Prest..  $.o;xxdo 

Redmond.   Kerr  &  Co.    $8,7.4.32. .    .John   L.  Riker.  $,45575.5o. ..  .Samuel  Sloan.  $.99600. ..  .S.einway  & 

Sons.  $63407.29.    .    H.  H.  Swasey.  $29.5... .    .  .J.  Selwin  Tait.  $698..97.  - .  .Union  Mortgage  Co..  $,92900 

Umted  States  Leather  Co..  $.298,3995.  •    -W.  F.  Wakeman.  $..377.98. .  •  .Western  Electric  Co..  $274450^       * 

The  following  debit  balances  should  appear  upon  the  "collection  ledger"  under  .late  of  October  3  the 
city  being  written  first  in  the  headings  of  accounts : 

Atlanta.  Ga..  Atlanta  National.  $.8672.99. . .   Boise  City.  Idaho.  Boise  City  National.  $3.75.20        Boston 
Mass..  National  Bank  of  Redemption.  $40.99.70. . .  .Buffalo.  N.  Y..  Bank  of  Buffalo.  $,72.10        Chicaeo  111  ' 
Bankers    National.  $75225..3. .  .Chicago.  111..  First  National.  $.7420.90. ..  .Denver.  Colo..  Denver  Nati;nai; 

S,T,r      p  M'n''J°'''.'  ^'""■''   ^°'"   *  "^'"'^  ^°-  «4S.'2   ...Detroit.   Mich..  Detroit   National 

$827..23....Fargo.N.D  Merchants  State.  $.2.7.47.  ••  .Galveston.  Texas.  Galveston  National.  $2.7070 
Grand  Rapids  Mich.  Old  National.  $2.5.o.,9. . . .  IndianaHis.  Ind..  Fletcher's  Bank.  $2.20.75  Knoxville 
Tenn..  Knoxville  Banking  Co..  $6278.84.  .  .Louisville.  Ky..  Bank  of  Kentucky.  $.03.49.  •  •  -New  Orleans.  La..' 
Hibern.a  National.  $89Cxk>.  . .  .Omaha.  Neb..  Fidelity  Trust  Co..  $742.58. . .  Pittsburg.  Pa..  Iron  City  National 
$452to  . .  .ProvKience^  R.  I..  Industrial  Trust  Co..  $298o.,2 . .  Syracuse.  N.  Y..  Commercial  Bank.  $37000  ' 
San  Francisco.  Cal..  Bank  of  California.  $20.49.60.  St.  Louis.  Mo..  Boatmen's  Bank.  $26472.7.  .  St  Paul' 
M.nn..  St.  Paul  Trust  Co  $5200. ..  Tacoma.  Wash..  Tacoma  National.  $4087.78 ....  Toledo.  Ohio.  Second 
National.  $2.6.03.      .Washington.  D.  C.  Columbia  National.  $.8440.07. 

Accourits  with  the  following  correspondents  will  be  opened  in  the  "bank  ledger."  and  their  balances 
cred.ted  under  date  of  October  2 : 

Albany.  N.Y..  National  Commercial.  $,9208.50. ..  .Atlanta.  Ga..  Atlanta  National.  $24000.       Boston 
iT'^Fi^rr!        1     «     ^''^'''^^T'  *^'5««  •  •   ""fl-alo.  N.  Y..  Metropolitan  Bank.  $.559^4.09. . .  .Chicago! 
KT  ?.o  '   5750000... Cincinnati.    Ohio.    National    Lafayette.    $.60327.29  ..  .DallasT  Texas    Cit^ 

National.  $28390.2,.       Detroit.   Mich..  Detroit  National.  $.50000. ...  Kansas  City.  Mo..  National  Bank  of 

^nZir.,  i'^^  M  "-r^''"';  ''^•'  ''""'*  °'  ^""^"''>'  5'^°490.43....Milwaukee.  Wis..  Wisconsin 
National.  Sy>562.,6.  .  .NewOrleans.  U..  Hibernia  National.  $.93421.07. . .  .Omaha.  Neb..  Nebraska  National. 
$95170.    .^Philadelphia.  Pa..  Fourth  National.  $38,098.55.  • .  .Providence.  R.  I..  Industrial  Trust  Co..  $302088  25 

..San    Francsco.   Cal..   Bank    of  California.   $500000. ..  .St.    Louis.   Mo..   Boatmen's    Bank.   $675000 
Minneapolis.  Minn..  Flour  City  National.  $.60000. . .  .Washington.  D.  C.  Columbia  National.  $,74998.42.        ' 

Checks  and  drafts  drawn  on  this  bank  by  dealers  and  correspondents  and  received  over  the 
counters  of  the  bank,  are  charged  to  the  dealer  or  correspondent,  as  the  case  may  be,  from  "debit- 
books,  the  aggregate  of  each  book  being  carried  to  the  "general  debit-book."  In  addition  to  the 
paid  checks  Itemized  in  the  i>aying  teller's  memorandum  (39),  which  will  now  be  charged  to  the 
dealers  ,n  the  debit-books,  the  following  checks  and  drafts  have  been  received  by  the  second  teller 
and  will  be  charged  from  the  respective  debit-bioks.  When  several  items  are  to  be  charged  to  the 
same  account  the  amounts  may  be  itemized  in  the  left-hand  column,  and  the  total  extended  in 
the  right-hand  column. 

focon^'^'pf'^  v"^"^"'';  ^"^^  *  ^°-  ^'  **75.  5362.67.  $9.28.  $3267.58.  $45000...  Lord  &  Taylor. 
$2500.  Edward  King.  $600,  $731.98. . . .  A.  Iselin.  Jr..  $7460.  $,69.29.  $78500. . . .  E.  R.  Durkee  &  Co..  $70.08. 
$12.29.  $31.64,  $750.  $9760.20,  $34758. 

Debit  Ru^k,  J/-Z-Otis  Brothers  &  Co..  $267.93.      -Union  Mortgage  Co..  $7000.  $91.62. . .  .Steinway  & 
Sons^$900.  $750.  $3715.75...  Henry   Maillard.  $41.50.  $763..8.  $7.8.9, ...  .Samuel  Sloan.  $,8400.  $.9247. 

4« 


THE    THIRD    TELLER 

Debit  Book.    7?^«/-j-Albany.    National   Commercial.    $4762.98.    $2,8.29. ..  .Boston.    National    Bank   of 
Re.lem,,t.on.  $4000.  ..  .Omaha.   Nebraska   National.  $2500.  $760... St.  Louis,  Boatmen's   Bank.  $2.20  $460 
»23-92.  $7- . . .  Dallas.  City  National.  $420. . .  .Buffalo.  Metropolitan  Bank,  $263.. 8,  $250. 

Checks  and  drafts  were  received  from  the  clearing-house  as  follows,  to  be  charged  as  specified  through 
the  respective  debit-books :  &  1  b  ■ 

/>..i/.r.^-Z_Edward  King  $9.54.  $627.  $.429.67. .    .Geo.  C.  Flint  Co..  $49.22.  $3.29.  $760.09.  $4762.50 
Denny    Poor  &  Co     $4750.  $,4600.  $23.,8.  .  .  .  IJulkley.   Dunton   &  Co..   $426.64.  $,7    $49.09^  $3348.5.. 

«  !,T.  ■  ■      '.^"'■'l  ''^,«"f  """"S  Co..  $4.29.  $6.63.  $37.87.  $409.30.  $2.76.  $960.  %,^:i^.,y. .  .  L„;;;;  &  Taylor. 

I-^i       ?^  „     ,       .    .   ''^  '^°-  **52-6o.  $31673.62.  $7260.  $43.8.9,.  $78900. . .  .Ciias.  H.  Baker.  $750 

Elliot  L.  Butler.  $4.60,  $3264.9,,  $47260. 

R    ^^^f'^'^'/^-^-U'V""  ^^""Jf-Y  Co..  $4600.  $3,625.65.  $4.67.  $3.8.62.  $.8..99.$27.  $4400. . .  .Pennsylvania 
R.  R.  Co..  $260.90  $4,260.  $329.95.  $4,.68.  $327.62. . .   New  York  Rubber  Co..  $61.07.  $376.29,  $3,47.60.  $23.92 
$♦.6.73.^     United  States  Leather  Co..  $20000.  $4500.  $.7600.  $2.6.  $38..4....C.  H.  Pine.  Prest.,  $45.20 
Andrew  McLean  &  Co..  $44.36.  $329.6..  $,43.75.  $.850.23 ...  .J.  .Sehvin  Tait.  $4459-80. . .  .Samuel  Sloan.  $74..82 
$40.  $452.69.  $.9000. . .  .J.  H.  Newman,  $2.60.  .  .  .Morton.  Bliss  &  Co..  $22000,  $66700.08   $,67500 

Ai«>C-.-Atlanta.  Atlanta  National.  $49.20.  $2.6.29.  543.6o.  $2,8.67.  $2500.  .  Boston.  National  Bank  of 
Re<lempt.on  $360.2..  $73.29.  $4757.62.  $376.2.. 5. . .  .Chicago.  First  National.  $,20.76.  $44500  $62  2,  $,  ,7 
$,9.  $7200  $.6723.99  $,00000.  $200000.  .  Detroit.  Detroit  National.  $72.,6.  $3,8.7,.  $4500.  $29,.9,,  $42362' 
$5000  .  I^u.sville.  Bank  of  Ken.ucky.  $49.24.  $763.87.  $476.57.  $2. .60.  $,8.08.  $2700.  .  .  Milwaukee  Wisconsin 
National  $7700.  $.5600.  $9.9.90.  $70.58.  $4629.  ..  .Philadelphia.  Fourth  National.  $,.20  $3,2674,  $-,. 
$542J7.  $.829Mo.  $4290.  $7.99.84.  $.35000.  $390.09...  San  Francisco.  Bank  of  California.  $50000  $2,400' 
$3478.95.  $79600.  $,00000  .St.  Louis.  Boatmen's  Bank.  $,75000  ...  Washington.  Columbia  National! 
$326.. .9.  $4,400.  $33. .94.  $754.82.  $99.89,  $47. .30.  $500.  $,200.  $600.0,. 

Collection  letters  enclosing  cash  items  for  collection  and  remittance  were  sent  to  the  following  collection 
banks,  being  debited  from  the  collection  debit-book : 

Atlanta  National.  $472,  92. ..  .National  Bank  of  Redemption.  Boston.  $2.980.4. ...  .Bankers'  National 
Chicago.  S45007.64  .  First  National.  Chicago.  $,7202.28 ....  Denver  National.  $7900. . .  Central  Loan  &  Trus 
Co..  Des  Moines.  $2.64.20.  Merchants'  State.  Fargo.  $,62.19.  ■  -  -Old  National.  Grand  Rapids.  $8252.77 
Fletchers  Bank.  Iiubanapolis.  $3329..  8. ...  Knoxville  Banking  Co..  $47.60. ..  .Bank  of  Kentucky.  $74,47^  "■ 
Hihernia  National.  New  Orleans.  $,3730. . .  .Fidelity  Trust  Co..  Omaha.  $9200. . .  Commercial  Bank,  Syracuse. 
$8740...  Boatmen  s  Bank.  St.  Louis.  $,8470.75  ...St.  Paul  Trust  Co..  $349.6. ...  .Second  National.  Toledo, 
$85.35 Columbia  National.  Washington.  $,0874.60. 

Dealers  and  correspo,idents  are  credited  for  "  straight "  deposits-that  is,  currency,  checks, 
drafts,  and  other  ,tems  deposited  for  which  immediate  credit  is  given— from  "credit-books  "  If 
more  than  one  credit  to  an  account  is  to  be  made,  the  amounts  are  itemized  that  each  amount 
may  be  separately  jxjsted. 

Credit  RwksA-L  and M~Z-Th^  credits  to  these  accounts  have  been  itemized  under  the  receiving  teller's 
memorandum  (29)  and  hsted  by  the  student.  The  names  and  amounts  will  now  be  entered  in  the  respective 
cre<l It-books  from  the  lists  as  prepared.  ' 

Utters  containing  New  York  drafts,  checks,  and  other  cash  items  were  received  with  instruction  to  credit 
the  general  accounts  (Credit  Book.  Banks)  of  the  following  correspondents  : 

«.nn^'*'"rh-^'"T'    Co'"'"^'-^';  55000  ....  Atlanta    National.   $,0000  ....  Buffalo.    Metropolitan    Bank. 
^  K  ■  ?' M^°'      ?\     '"°"    •  *^7^'9-^'  •  •  •  •  ^"*'"°''  ^^^^on^\.  $.  5738.35    ...  Wisconsin   National.  $63700 
.Nebraska  N..tional.  $5000.       Philadelphia.  Fourth  National.  $20000.  ..  .Bank  of  California.  $6.3,8.22       . 
Washington.  Columbia  National.  $28475.  •  *-    J 

P.!  ^"t'-'^'^r-^^'  IT'.'   '°.   ^   "■"'■■'"•'   "'   ■'^'^''^"    '^"   telegram:    Chicago.   First   National.  $300000 
Philadelphi.a.  Fourth  National.  $,55000. . .    Bank  of  California.  $2fxx»o. 

Remittance  letters  containing  drafts  on  city  banks  were  received  for  credit  of  the  following  collection 
accounts,  to  be  entered  m  the  collection  credit-book,  the  total  amount  in  the  right-hand  column  and  the 
charges  in  the  left-hand  column  : 

Atlanta  National.  $7672.99;  charges.  $9.59. . .  .Boise  City  National.  $2000:  charges.  $5. . .  .National  Bank 
of  Redemption.  Boston.  $252.6.22;  charges,  $25.22...  Bank  of  Buffalo.  $.00;  charges.  .5c  ....  Bankers' 
Nationa.  Chicago.  $6373..9,:  charges,  $63.72. ..  .First  National.  Chicago.  $3,90.92;  no  charges...  Denver 
National.  $5,75:  charges.  $2.59  ...Detroit  National.  $.27.-23:  charges.  $,.27. ...  Merchants'  State  Fargo 
$4.7.47:  charges.  $,^39  Galveston  National.  $,  .00;  charges.  $2.75 ....  Knoxville  Banking  Co..  $360-  changes' 
$3  60.  . .    Hibern.a  National.  New  Orleans,  $35000;  charges.  $.7.50. . . .  Industrial  Trust  Co..  Providence  R?  L^ 

43 


BANK    BOOK-KEEPING 

$1980.12;  charges.  $2.45 ..  ..Commercial  Bank.  Syracuse,  $29808  20;  charges.  $14.91 .. .  Boatmens  Bank  St. 
Louis.  $144.45:  charges.  $7.22. ...St.  Paul  Trust  Co..  $851.40;  charges.  $1.06. . .  .Tacoma  National.  $591' 22- 
charges.  $4.93. .    .Columbia  National,  Washington.  $7897.45;  charges,  $7.90. 

86.  Second  Period.— A^/^w*^  /-Debit  dealers  from  the  first  teller's  memorandum  of  transactions 
(40).  The  followm-  ci.ecks  and  drafts  were  received  from  the  clearing-house  or  over  the  counter  of  the  second 
teller.    ( The  present  purposes  of  the  student  do  not  require  the  separation  of  these  items  as  in  the  first  periocl.) 

DeHi  Book.A-L-Xy^nny.  Poor  &  Co..  $318.52.  $4000.  $16741.92  C,eo.  C.  Flint  Co..  $4961  $400 
$4726.93.  $67126.93.  $18900.  $26748.50.  .  .  A.  Iselin.  Jr..  $35000.  $2450.  $24761.33.  . .  •  E.  R.  Durkee  &  Co.  '$43-0' 
$17954.  $16700.  $12495.60.  $454c»....Edward  King.  $.34365  81 ....  Bulkley.  Dunton  &  Co..  $473  80  $31-76 
$48.32.  $419.60.  $53167.28.  $.14500  ...Elliot  L.  Butler.  $23.92.  $495-76.  $942.68.  $5000 . . . .  Chas.  H.  Ba'ker* 
$3752.90.  $4672.  $691.28.  ..Knickerbocker  Trust  Co..  $75000.  $235693.07.  $25000  . .  Lord  &  Taylor  $31540' 
$2189.62. . .  .G.  G.  Haven.  $200000.  $83564.93.  ' 

Debit  Book,  J/-Z— H.  Maillard.  $4.70.  $500.  $3418.29.  $5000. . .  .Andrew  McLean  &  Co..  $20000  $123  92 
$4798.40       .H.  Mills.  Treas..  $43.92.  $2500.  $371.64. . .    Morton.  Bliss  &  Co..  $45000.  $.85000        New  York 
Rubber  Co..  $2380.  $4795. 10.  $.0000.  $25000.      .Otis  Brothers  &  Co..  $410.  $12718.90.  $3961.20  $4450  $■'1750 
. . .  .Pennsylvania  R.  R.  Co.,  $62780.  $327.84.  $10000. . .  C.  H.  Pine.  Prest..  $21600.  $4270.80  $5000        John  L 
Riker,  $25000.  $340.61.  $2740.28,  $9000...  Redmond.   Kerr  &  Co.,  $25000.  $7490.68,  $40000  $2893174 
Samuel  Sloan.  $2758.92.  $.900,  $1706.10.  $349526.  $300.  .  .   Steinway  &  Sons.  $760.  $14342.  $1068   $3260  $1800 
$740.90.  $12000  ...H.   H.  Swasey.  $127.30,   $374.28.  $479580.  $320.69.  $24.75.  $318.12. ..  .J.  Selwin  Tait.' 
$47.98.  $129.62.  $116.33.  $420.67,  $1500...  Union    Mortgage   Co..  $5000.  $4000.  $20000.  $398.67        United 
States  Leather  Co..  $25000.  $63750,  $1000... W.  F.  Wakeman,  $470.50.  $3.90.  $116.67,  $12.43.  $"84.12 
Western  Electric  Co.,  $189.47.  $5000.  $741.20.  $12000.  $9000.  $4700. 

Dedit  Book,  Banks-All^nta,  Atlanta  National.  $3126.92.  $41.69.  $73.28.  ^400.  $.600. . . .  Albany.  National 
Commercial.  $2300.  $470.  $37.62.  $930.86. . . .  Boston.  Bank  of  Redemption.  $20000.  $5000.  $7000  $4500  $7800 
Buffalo.   Metropolitan.  $231.82.  $427.95.  $1000.  $3760. ..  .Chicago.  First   National.  $30000. '$4567^    $150000' 
$19400,  $2960.50,  $178.60,  $38000.  $25000.  $200000.  ..Cincinnati.  National    Lafayette.  $371.42.  $I5'25    $7500' 
$420.63. . .  .Detroit.  Detroit  National.  $471.25.  $575o.  $4378.20. . .  .Kansas  City.  National  Bank  of  Commerce' 
$7000.  $20000.  $3137.68.  $18249.60.  $238.74...  Louisville.  Bank  of  Kentucky.  $16.93.  $29.  84    $30    $43.00' 
$376.80.  $.9.29.  $437.62.  $.000,  $7460.  $31 29.82...  Milwaukee,  Wisconsin  National,  $3127.65.  $400    $.200' 
$3000.  $7500.    .    New  Orleans.  Hibernia  National.  $3000,  $2000.  $.60.90.  $4700.  $20000. . .   Omaha.  Nebraski 
National.  $12.33.  $«99.67.  $2000.  $5000...   Philadelphia.  Fourth  National.  $.2000.  $18000  $41500  $2500 
Providence.  Industrial  Trust  Co..  $60000.  $.2000.  $4775 . . .  .San  Francisco.  Bank  of  California.  $35000  $.2600 
$3120.80.   $80000.    $50000... St.    Louis.    Boatmen's.    $40000,    $3.27.92,    $367.67.    $50000.   $37850.   $5400 
Minneapolis.   Flour  City   National.  $2000.  $3000.   $4000.  $12000,  $4500.  $24000. ..  .Washington.  Columbia 
National,  $600.  $54000.  $380.67.  $329.62.  $4765.91. 

Collection  letters  enclosing  cash  items  were  sent  to  the  following  collection  banks  • 

Atlanta  National.  $.249.21  Bankers'  National,  Chicago.  $25263.92 ....  National  Bank  of  Redemption. 
$47370.28....  Denver  National.  $15720. ..  .Central  Loan  &  Trust  Co..  Des  Moines.  $4751.65  Merchants- 
State.  Fargo. $1 240.95. .  Old  National. Grand  Rapids,  $643367.  -  .Fletcher's  Bank.  Indianapolis.  $4728  10 
Knoxville  Banking  Co..  $2320.60.  .  .Bank  of  Kentucky.  $3267. . .  .Hibernia  National,  New  Orleans.  $.7621  25 
. .  .Fidelity  Trust  Co..  Omaha.  $4761.33. .  .Commercial.  Syracuse.  $.2430. . .  .Boatmen's.  St.  Louis.  $16375  80 
. .  .St.  Paul  Trust  Co..  $8460.25. . .  .Second  National.  Toledo,  $9871.60. . .  .Columbia  National,  Washington 
$15000.  * 

Credit  dealers  for  deposits  as  per  second  teller's  memorandum  ol  transactions  (30). 

Letters  containing  checks,  drafts,  etc..  were  received  for  credit  of  the  general  accounts  of  the  followinif 
correspondents  :  Atlanta  National.  $7425         National  Bank  of  Redemption.  $50000.  .  .  .  First  National.  Chicago 
$251948.29.    .  .National  Lafayette.  Cincinnati,  $10000. . .  City  National.  Dallas.  $4327.65. . .  .Detroit  National' 
$.2269.26.       National  Bank  of  Commerce.  Kansas  City,  $25000. . .  .Wisconsin  National,  $25000. . ..  Boatmen's'. 
St.  Louis.  $75000.    .  .Flour  City  National.  $18761.25. . .  .Columbia  National.  $27263.19. 

Remittance  letters  containing  New  York  exchange  were  received  for  credit  of  the  following  collection 
accounts: 

Atlanta    National.   $15721.92;    charges.   $.9.65. ..  .Boise  City   National.   $1175.20;    charges    $294 
National   Bank  of  Redemption.  $51244.59:   charges.  $21.98. ..  .Bank  of  BuflTalo.  $72.10;  charges    loc 
Bankers'  National.  Chicago.   $7401594:   charges.    $48.94 ....  First   National,  Chicago.  $1*40. 1.36.  '    Denver 
National.  $36669.77;    charges.   $18.33 ...  .Central   Loan   &   Trust  Co..   $15176.74;   charges.   $2.16         Detroit 
National.  $2241.38;  charges.  $2.24. . ..  Merchants' State,  Fargo.  $962.19;  charges.  $3.2. . . .  .Galveston  National 
$1195.90;   charges,  $2.99.... Old  National.  Grand   Rapids.   $43699.76;   charges.  $29.76. ..  .Fletcher's   Bank' 


THE    THIRD    TELLER 

Indianapolis.  $5449-93:   charges,  $5.45 ....  Knoxville  Banking  Qo..  $5966.44:   charges.  $5.97        Bank  of  Ken 
tucky.  $75.8.21;    charges.  $9.40. ..  .Hibernia  National.  New  OrIeans^,7cx,4.36-   chan  r$6  87         F ll  I^ 
Trust  Co..  Omaha.    $9942.58;    charges,  $9.94. ..  .Iron  City  National.  $45260^  ^ha^e  ?  ^i^'^f " "  Ind  tS 
Trust  Co..  Providence.  $952.72;   charges.  95c. ..  .Commercial.  Syracuse   $150,1  SotharTr.s    «7  n^         u     1, 
of  Cahfornia.  $20323.68;  charges,  $20.32 ....  Boatmen's.  St.  Louis.i57692.;6    ^r,!:;.  $  8  f'    S^Ll  Tr^'s 
Co..  $4698.2.;    charges.   $4.70,  ..  .Second.    Toledo.    $726.20;    charirJ    too         T^rom.    iJ.  i     c       I^ 

charges.  $3.5o....Columbia  National.  Washington.  $2UI7.22;  charged.  $T8.o2"      "''   ^^^'^'^ 

an   ^h.  fl^  Pttiod.-D,cemfier  /-Debit  dealers  from  the  first  teller's  memorandum  of  transactions 
(41).     The  following  checks  and  drafts  were  paid  this  day : 

Cc    ^'^'nT^  ^-^-G-W-  Adams.  $400.  $5000.  $3,38.69.  $4000. ..  .Chas.   H.   Baker.  $450.65.  $32937 
$  500....BuIkley,  Dunton  &  Co     $472.29.  $3768.40.  $4768.25.  $357.6.50. ..  .William  Cla. k.lU  $3763.^ 
f^r'A  ■  c  "^''"■;  ^'"'"  ^  ^°'  ^'^^'  ^'^^7.28.  $300.  $7587.28.  $70000,  $3.264.29. . .    Denny.   Poor  &  Co 
$4293.65.  $7695^28.  $.^. . . .  E.  R.  Durkee  &  Co.,  $37.68,  $345963.  $43.00.  $95652  60. . .  .Geo  C  Flint  Co 
$SOOO.  $.2630.  $2,981.62.  ..  .Gilbert  Manufacturing  Co..  $43.60.  $463.98.  $.8400^  .  .G.  G.  Haven,  $5000.  $764^ 

Co"  L^'ll'r  ^^T^  ^'^^«^;  *3=8-^-  ■  •   Ed-^^d  J^injf.  $12300.  $36000.  $125.73. . .  •  Knickerbocker  Trust 
Co..  $175000.  $25400.  $267493..8.  $307842.63. . .  .Lord  &  Taylor.  $,260.83.  $4927.68,  $5427.63.  $,9250,  $2,450  75 
ne6,t  ^y-.J^-^-n.   Maillard,   $4300.   $6000.   $,8500. ..  .Andrew   McLean    &   Co..   $3,700.   $026738 
$437.62         H.    Mils,   Treas..   $700.   $,233.67.    $7490.65.  ..  .Morton.    Bliss   &   Co.,   $4000    $3768,2    $26375 

?o''$!oi'T-       ■^.      •  """'"n"'  f"'-'^'  ^''■'^'  *7-'-  ^^=5.65.  $769.27.  $2737.49   ...New  York   Rubbe; 
Co     $4000,  $,,000,  $35000... Ot.s  Brothers  &  Co..  $329.65.  $4.67.28,  $25000,  $7890.  $9672.80.  $,0000 
Pennsylvania  R.R^Co    $45000.  $22500.  $,8460.93. .  .  .C  H.  Pine.  Prest..  $,2000.  $3967^0.  $4000         Redmond 
^V^foo     •   S,         ■  *T/'  «f^78,  $45.60.  ...John   L    Riker.  $.6400,  $230^.    'sann.d  Slo;.n,  $3^! 
$45785.^.    .  .Steinway  &  Sons.  $5000.  $875..63.  $20000.  $9459.20.  . .  .H.  H.  Swasey,  $4000.  $3892.68,  !i^58.6c^ 
J.    Sewin   Tait.    $,262.75.    $400.50,    $396.78,    $926.94.    $5000. .  ..Union    MortU^e  Co      $4700     $.4,0 
$3500  . .  .United  States  I..ulK-r  Co..  $.25760.95.  $75Soo,  $450000. . .  .W.  F.  Wakema;.f7690   $32,  S'  $37*6  O^' 
$2493.10. . .  .Western  Electric  Co..  $25000,  $3,663.67.  $48932.73.  *3-i.o4.  ;i>370.9i. 

Commt*H..f'«f;^?."%~^''"''/''"''  ^'''°""''  ^^^^^^S'  53>8.62.  $329.54.  $3769.50. ..  .Albany.  National 
Commercal  $3963.10^  $57,243.  $,000. ..  .Boston,  National  Bank  of  Redemption.  $20000.  $476o.i8.  $35000 
$23982.  BuflTalo.  Metropolitan  Bank.  $4360.29.  $2,68.,2.  $7420.95  ...  Chicago.  First  National.  $^7000 
$  3>oo.  $240000.  . .  .C.ncmnati.  National  Lafayette,  $3165.70.  $2250.  $7958.63.  .  .  .  Dallas.  City  National.  $237  60 
$3400.  $.928.  $317-95.  $7500.  Detroit.  Detroit  National.  $3.8.75.  $4200.  $.2000.  ...  Kansas  City.  NaUonai 
Bank  of  Coirimerce.  $7416.12.  $35000.  $268.93.    .  .Louisville.  Bank  of  Kentucky.  $6750.  $3200.  $549..6o 

$3362.98  $734.-25.... Omaha.  Nebraska  National.  $2000.  $3500,  $4750.  $8361:75..  .Philadelphia.  Fourth 
National.  $5000  $,2300.  $,3000.  $45000.  $62500.  $75400.  ..  .Providence.  In.lustrial  Trust  Co..  $5Lo  $,4700 
$3,540.25.  ^2683.7...  San  Francisco.  Bank  of  California.  $43700.  $22800.  $49000.  $95000  $24,695.43  ' 
S.  Louis  Boatmens,  $75000.  $243.2.50.  $.37421.60  ...Minneapolis.  Flour  City  National.  $246..?2  $3cxx," 
$5496.25.  $.2000,  $44000  .  .Washington.  Columbia  National.  $30000.  $2750,  $4500.  $29000 
Collection  letters  enclosing  cash  items  were  sent  to  the  following  collection  banks  : 

Atlanta  National  $2463.90.  .  .Boise  City  National,  $5290.60  . .  .National  Bank  of  Redemption.  $6,29,.33 
Lo.n  &  Tn  » "ffa  I  o  $9340.20.  .Bankers'  National.  Chicago.  $73600.  .  .  .  Denver  National.  $4.4<k,.  . .  Centrli 
Loan  &  Trust  Co.,  Des  Mo.nes.  $2,, 00. ..  .Detroit  National.  $17900. ..  .Merchants'  State,  Fargo.  $3760 
Galveston  National.  $.2300.  ...  Fletcher's  Bank.  Indianapolis.  $.7200  ....  Knoxville  BankinJ^  Co..  $21900 
$^.il  "f  1  r.  T  rT'  '''"T  ^'•^''  535400...  Bank  of  Kentucky.  $9000. ..  .Hibernia  Nation^ 
^JrTl  R        t  ^  .^^"'°         ''°"  ^'^y  ''"''°"'^''  J2.000....  Industrial  Trust  Co..  $7400 ....  Com: 

merc.al  Bank.  Syracuse.  $9600...    Bank  of  California.  $15000  ...  Boatmen's.  St.  Louis.  $17951.12        St  Paul 

Wa"s'hington^'$i,?o'5o'  National.  Toledo.  $3495.20.    .  .Tacoma  National.  $5200. . .  .Columbia  National. 

Credit  dealers  for  deposits  as  per  second  teller's  memorandum  of  transactions  (3,). 

Letters  containing  checks,  drafts,  etc..  were  received  for  credit  of  the  general  accounts  of  the  following 
correspondents:  Nat.ona  Commercial.  Albany.  $.5000. ..  .Atlanta  National.  $.0000. ..  .National  Bank  of 
Redemption.  $,25000.  Metropolitan  Bank.  Buffalo.  $25000. . . .  First  National,  Chicago.  $400000.  .  .  .  National 
Lafayette.  Cincinnati.  $50000.  ..  .City  National.  Dallas.  $5000. ...  Detroit  N.ationai.  $8500 ....  National  Bank 
of  Commerce.  Kans.is  City.  $40000. ...  Hibernia  National,  New  Orleans.  $50000  Nebraska  National 
$.0000....  Fourth  National.  Philadelphia.  $.25000.  ..  .Industrial  Trust  Co.,  $.00000  B^^k  of  CairnTa' 
$250000. . .  .Boatmen's.  St.  Louis.  $200000. . .  .Flour  City  National,  $45000. . .  .Columbia  National.  $75000.        ' 

4S 


ill 


BANK    BOOK-KEEPING 

Remittance  letters  containing  New  York  exchange  were  received  for  credit  of  the  following  collection 
accounts: 

Atlanta  National.  $1249  21 ;  charges.  $1.56. . .  .National  Bank  of  Redemption.  $90620.24:  charges.  $47.37 
. . .  Bankers'  National.  Cliicajjo.  $25263.92;  charges.  $25.26.  . .  .First  National.  Chicago.  $53267.61 .  Denver 
National.  $15720;  charges.  $7  86. ..  .Central  Loan  &  Trust  Co..  $475'.65:  charges.  $47.51  ...  .Merchants- 
State.  Fargo.  $124095;  charges.  $4.13. . .  .Old  National,  Grand  Rapids.  $6433.67;  charges,  $6.43. . .  .Fletcher's 
Bank.  Indianapolis.  $4728.10;  charges.  $4.73. . . .  KnoxviUe  Banking  Co..  $2320.60;  charges,  $2.32. . .  .National 
Bank  of  Commerce,  Kansas  City.  $14706.59;  charges.  $7.35-  -Bank  of  Kentucky.  $3267;  charges.  $4  08 
Hihernia  National.  $3ni4-5o;  charges.  $8.81  ...  Fidelity  Trust  Co..  $4761.33;  charges,  $4.76  ..  Industrial 
Trust  Co.,  $1748337;  charges,  $17.48  ...Commercial  Bank.  Syracuse,  $37417.50;  charges.  $6.22.  ...  Bank  of 
California.  $14726.86;  charges.  $1473  ..  Boatmen's.  St.  I-ouis.  $55256.35;  charges.  $8.19  ..St.  Paul  Trust 
Co.  $846025;  charges.  $8.46. ..  .Second  National.  Toledo,  $9871.60;  charges.  $9.87. ..  .Columbia  National, 
$15000;    charges,  $1.88. 

88.  Fourth  Period* — December  J/— Debit  dealers  from  the  first  teller's  memorandum  of  transac- 
tions (42).     The  following  checks  and  drafts  were  paid  this  day: 

Debit  nook,  ^i-Z-G.  W.  Adams,  $296.86,  $479365.  $3761.23,  $2000,  $3000. . .  .Chas.  H.  Baker.  $100 
$560.  $2760.38.  $41 5-67....  Bulkley.  Dunton&  Co.,  $478.36.  $9300,  $5400,  $2736390.  $500. ..  .William  Clark. 
$150.  $1136.83.  $6800.  $3000.  .  .Cooper.  Hewitt  &  Co..  $30400,  $63851.29,  $8362,  $931.60.  $21473.80,  $15936.50 
...Denny.  I'uor  &  Co.,  $373812,  $9381.60.  $21738.43,  $i  1476.95  ..  .E.  R.  Durkee  &  Co.,  $182.63,  $6731.46. 
$48591.65,  $101500. .  .Geo.  C.  Flint  Co..  $3769.20.  $16873.35.  $28436.48.  $7000. . .  .Gilbert  Manufacturing  Co.! 
$27600,  $5127.80.  $361.45  ....G.  G.  Haven.  $6700,  $38500,  $47391.64  ...  .A.  Iselin,  Jr.,  $21470,  $9782.45! 
$18738.50.  .  .Edward  King,  $9738  12.  $4150.  $11873.50. . .  Knickerbocker  Trust  Co..  $138450.  $17300,  $231900' 
$77363  IZ  ■ .   Lord  &  Taylor.  $3129.50.  $19700.  $31460. 

Debit  Book,  Af-Z—H.  Maillard.  $3930.  $7150.  $23975-6o. ..  .Andrew  McLean  &  Co.,  $35472.29.  $11300. 
$410.  $3587.50. . . .  H.  Mills.  Treas..  $900.  $4300.  $8162.50. . . .  Morton,  Bliss  &  Co.,  $327.30.  $3982.69.  $2378.25! 
$963.25.  $21700.  $37300.  .J.  H.  Newman.  $342.90.  $560.75.  $49-75.  $531-63.  $947.62,  $4325.76. . .  .  New  Yo' k 
Rubber  Co.,  $3126.45.  $11362.25,  $3176358.. .  .Otis  Brothers  &  Co..  $14.29.  $3700.  $800  . .  .Pennsylvania  R.  R. 
Co..  $21300,  $31800,  $1269.73.  $26950  ...C.  H.  Pine.  Prest.,  $11263.95.  $2947.60.  $397.65 ....  Redmond.  Kerr 
&  Co..  $9300.  $11265,  $33800,  $8376.29. . .  .Samuel  Sloan,  $21473.10,  $15412,  $1200. . .  .Steinway  &  Sons.  $3200. 
$4347.08,  $18900...  H.  H.  Swasey,  $2930.  $5230.  $8129.76....].  Selwin  Tait.  $323.90,  $1300,  $671.98.  $900! 

$3120. . .  .Union  Mortgage  Co.,  $5260,  $11400,  $6000 United  States  Leather  Co..  $91363.80,  $43500,  $123800! 

$98471.62  ...W.    F.   Wakeman,   $2187.60,   $3427.90.   $298.12,    $6371.28  ...  .Western    Electric   Co.!    $11200! 
$28763.20,  $61000. 

Debit  Ihok,  Ranks— AWztWsl,  Atlanta  National,  $3760.  $700.  $500,  $7000. . . .  Albany,  National  Commercial. 
$3162.20,  $2000,  $1273.48,  $6326.92.  ..Boston.  National  Bank  of  Redemption,  $21000,  $27360.  $5000,  $17000, 
$19000.    ..  Buffalo,  Metropolitan  Bank,  $3700,  $3827.63,  $934362,  $1037.04. . .  .Chicago,  First  National,  $21370.06! 

$28900,  $197448.75,  $71349.50  ...Cincinnati,   National   Lafayette,  $3763.29.  $2963.12,  $8150 Dallas.  City 

National,  $2740.59,  $2930,  $3716.29,  $10000. . ..  Detroit,  Detroit  National,  $429.62,  $3176.29,  $9300. . .  .Kansas 
City.  National  Bank  of  Commerce,  $3127.30,  $27300,  $13000. ...  Louisville,  Bank  of  Kentucky,  $2140.60, 
$2738.12,  $8729.62. . .  Milwaukee,  Wisconsin  National,  $400.  $3000,  $8100. . .  New  Orleans,  Hil)ernia  National, 
$2100.  $3734.40,  $9147.63,  $3763.29  ...Omaha,  Nebraska  National,  $2000,  $3400,  $713629.  $12340.26.... 
Philadelphia,  Fourth  National,  $3125.47,  $13760.29.  $21000.  $4000,  $2160.  $3764.28,  $28300,  $57872.65 ... . 
Providence,  Industrial  Trust  Co  ,  $7169.28.  $38427.63.  $15492.73,  $73460  . .  .San  Francisco,  Bank  of  California, 
$27300.  $18300,  $91890,  $125000...  St.  Louis,  Boatmen's,  $53000.  $41782.29.  $85400. ..  .Minneapolis,  Flour 
City  National,  $127.63.  $3100.  $25000. . .  .Washington.  Columbia  National.  $27300.  $1900,  $17000,  $2000. 

Collection  letters  enclosing  cash  items  were  sent  to  the  following  collection  banks: 

Atlanta  National,  $1 2000. . .  .Boise  City  National,  $8327.38 National  Bank  of  Redemption.  $81312.50. 

Bank  of  Buffalo,  $13600 Bankers'  National,  Chicago,  $81376.23 Denver   National,  $38300 Central 

Loan  &  Trust  Co.,  Des  Moines,  $28370.08 Detroit  National,  $21600 Merchants'  State,  Fargo,  $2167.28 

...Galveston    National.    $9387.65.  ...  Fletcher's    Bank,    Indianapolis,  $16327.82. ..  .Knoxville    Banking  Co., 

$18312.49 National  Bank  of  Commerce,  Kansas  City,  $41390.02 Bank  of  Kentucky,  $11300 Hibernia 

National,  $35382.60. ...  Fidelity  Trust  Co..  $15400. ..  .Iron  City  National,  $5330.65. ..  Industrial  Trust  Co.. 
$31500...  Commercial,  Syracuse,   $17328  42    ...  Bank   of  California.   $18362.28  ....  Boatmen's.   St.    Louis. 

$2167008 St.    Paul   Trust    Co.,    $8361.45  ....  Second    National.   Toledo,    $2395.12  ...  .Tacoma    National, 

$7319.46 Columbia  National,  Washington.  $15376.28. 


THE    THIRD    TELLER 

Credit  dealers  for  deposits  as  per  second  teller's  memorandum  of  transactions  (32). 

Letters  containing  checks,  drafts,  etc..  were  received  for  credit  of  the  general  accounts  of  the  following 
correspondents:  National  Commercial.  Albany,  $25000. ..  .Atlanta  National,  $21000. ..  .National  Bank  ot 
Redemption.  $150000. . .. Metropolitan  Bank.  Buffalo.  $45000. . .  .First  National.  Chicago.  $375000. . .  National 
Lafayette.  Cincinnati,  $95000.  .  City  National,  Dallas,  $20000.  .  .  Detroit  National,  $40000. . .  .National  Bank 
of  Commerce,  Kansas  City,  $45000. ..  .Bank  of  Kentucky,  Louisville,  $31260.25 ...  .Wisconsin  National. 
Milwaukee,  $12365.40. ...  Hibernia  National.  New  Orleans,  $64300. ..  Nebraska  National,  $31750.28.... 
Fourth  National,  Philadelphia,  $181490.25....  Industrial  Trust  Co.,  $175000. ..  .Bank  of  California,  $240000.... 
Boatmen's,  St.  Louis,  $264375. . .  .Flour  City  National,  $73421.80. . .  .Columbia  National,  $81345.70. 

Remittance  letters  containing  New  York  exchange  were  received  for  credit  of  the  following  collection 
accounts : 

Atlanta  National,  $4214.61;  charges,  $3.08 ....  Boise  City  National,  $5290.60;  charges,  $13.23 National 

Bank  of  Redemption.  $142929.03;   charges.  $61.29.       Bank  of  Buffalo.  $9340.20;   charges.  $7.78. . .  .Bankers' 

National,   Chicago,    $73600;    charges.    $7360 First    National.    Chicago.    $13031.27 Denver    National, 

$45897.75;    charges,  $20.70 Central    Loan  &  Trust  Co..  Des  Moines,  $21100;   charges,  $21.10 Detroit 

National,  $30591.53;  charges,  $17.90. ..  .Merchants'  State.  Fargo,  $3760;  charges.  $12.53. ..  .Galveston 
National,  $15463.06;  charges,  $30.75  ...Fletcher's  Bank,  Indianapolis,  $17200;  charges,  $17.20. ...  Knoxville 
Banking  Co.,  $21900;  charges,  $21.90. ..  .National  Bank  of  Commerce,  Kansas  City,  $35400;  charges,  $44.33 
...  .Bank  of  Kentucky.  $33968.75;  charges,  $11.25. . .  .Hil>ernia  National,  New  Orleans,  $21400;  chargt-s,  $10.70 
....Fidelity  Trust  Co.,  Omaha,  $3019.10;  charges,  $2.12. ..  .Iron  City  National,  Pittsburg,  $21000*^  charges, 
$10. 50.... Industrial  Trust  Co..  $3613529;  charges,  $7.40  ...Commercial,  Syracuse,  $106165.39;  charges! 
$4.80. . .  .Bank  of  California,  $27162.82;  charges,  $15. . .  Boatmen's,  St.  Louis,  $37941.12;  charges,  $8.98. . 
St.  Paul  Trust  Co.,  $3251.75;  charges,  $3.25. .  .  Second  National,  Toledo,  $63435.20:  charges.  $3.50. . .  .Tacoma 
National,  $155050;  charges,  $5.20. . .  .Columbia  National,  Washington,  $4010.50;  charges.  $5.01. 


47 


i 


\i 


CHAPTER   VII. 
THE    GENERAL    BOOK-KEEPER. 

89*  The  general  book-keeper  of  a  large  bank  occupies  a  position  of  marked  resjwnsibility. 
In  the  line  of  promotion  his  rank  is  usually  considered  below  that  of  either  the  l>aying  or  the 
receiving  teller.  By  many,  however,  his  jjosition  is  considered  outside  the  ordinary  line  of 
advancement.  The  performance  of  his  duties  requires  a  s|x:cial  preparation  not  to  be  acquired  in 
any  of  the  other  departments  of  the  institution.  In  fact,  one  may  pass,  by  promotion,  through  the 
various  departments,  performing  satisfactorily  the  duties  in  each,  from  messenger  to  cashier,  and  ytt 
not  be  thoroughly  qualified  as  the  general  bo<jk-kee|Jer.  It  is  generally  presumed  that  the  cashier 
of  a  bank  thoroughly  understands  the  work  of  every  de|)artment,  and  that  of  the  general  book-kec|)er 
as  well.  Many  cashiers  do,  but  others  are  not  so  competent  and  it  is  not  im|>crativc  that  they 
should  be. 

90.  The  General  Ledger. — The  general  ledger  contains  a  summary  of  the  entire  operations 
of  the  bank  systematically  collated  from  the  several  dc|>artmcnts.  From  the  accounts  therein 
comes  the  information  for  officers,  directors,  or  stockholders  concerning  the  condition  of  the 
bank,  its  assets  and  liabilities,  profits  and  losses,  investments  and  net  earnings.  'I'he  general  debit 
and  credit  books  are  the  media  through  which  the  transactions  are  collated,  arranged  and  put  in 
convenient  form  for  being  jx)sted  to  the  general  ledger.  Where  a  large  number  of  subordinate 
ledgers  are  in  use  the  entries  uixin  the  general  debit  and  credit  books  are  usually  condensed 
into  what  are  known  as  "supplementary"  books  from  which  the  general  book -keeper  {Xists  to  the 
general  ledger. 

That  the  student  may  have  no  difficulty  in  understanding  the  use  of  the  general  debit  and  credit 
books,  the  work  for  the  first  iierioil  has  been  i)resented  in  full.  The  student  will,  therefore,  write 
up  his  own  books  from  the  following  memorandum  of  transactions,  as  illustrated,  deferring  the 
opening  of  the  general  ledger  until  the  general  debit  and  credit  books  for  the  first  period  have  been 
completed. 

91.  The  General  Debit  and  Credit  Books. — In  practice  the  general  book-keeper  would  have 
before  him  the  letters,  charge  and  credit  tickets,  or  other  memoranda  from  which  the  entries  would 
be  made.  To  facilitate  posting  both  to  the  general  balance  ledger  and  the  general  ledger,  he  would 
not  begin  the  writing  up  of  the  general  debit  and  credit  books  until  the  day's  transactions  had  been 
completed,  and  could  therefore  assort  the  debit  and  credit  tickets,  cashier's  checks,  letters,  etc., 
etc.,  that  all  the  items  affecting  each  account  in  the  ledger  might  be  grou|)ed  together.  .Accounts 
alK>ut  which  he  might  be  in  doubt  would  be  left  until  the  last,  or  such  an  amount  of  s|)ace  left 
blank  after  each  as  his  experience  might  suggest. 

This  explanation  will  account  for  the  grouping  of  items  under  Interest,  Exchange,  C!ashier 
Account,  etc.,  in  the  general  debit  and  credit  books,  as  illustrated.  The  memorandum  of  transac- 
tions for  the  first  period  is  given  below,  and  the  general  debit  and  credit  books  immediately  follow. 
The  student  will  write  up  both  books  in  full  before  proceeding  further. 

MEMORANDUM   OF   TRANSACTIONS. 

92*     First  Period. — October  2— Tht  loan  clerk  reports  demand  loans  made  as  follows:   Loan  JJ 1257, 

Harvey  Fisk  &  Sons,  $50000. . .   Loan  1 1258.  Dunham,  Buckley  &  Co.,  $34750 Loan  5  1259,  Goldman,  Sachs 

&  Co.,  $47280.15. . .  .Loan  5  1260,  Vermilye  &  Co.,  $195000  (All  cashier's  checks  given  during  this  period  will 
be  specified  under  "  cashier's  checks  issued  "  and  will  not  be  entered  at  this  point.) 

Time  loans :  5  1261  for  30  days  to  Steinway  &  Sons  ;  proceeds  creditet!  to  their  account,  $12500;  interest, 
$62.50;  total,  $12562.50.  ..  .S  1262  credited  to  Gilbert  Manufacturing  Co..  $5000;  interest  for  60  days.  $50; 
tot.il,  $5050.  ..  .5  1263  credited  to  Redmond.  Kerr  &  Co.,  $16492.19;  interest  for  90  days.  $247.38:  total, 
$16739.57    ..   5  1264  by  cashier's   check   to  VV.   H.   Kimball  lor  $8762.50;    interest  for  30  days.  $43.81:   total 

48 


THE    GENERAL    BOOK-KEEPER 

amount,  $8806.31   ...Total  interest  credited,  $403.69.     (Give  Interest  account  four  lines  space  as  shown  in 
general  credit  book.) 

Paid  note  made  by  Hibernia  National,  New  Orleans,  cjue  to-day,  payable  at  this  bank,  for  $40000.  as  per 
charge  ticket  issued  by  third  teller.  (In  most  cases  of  this  character  the  note  would  be  certified.). ..  .Bills 
discounted  debited  as  per  discount  register.  $387035.19. . .  .Exchange,  Discount.  Dealers,  and  Cashier  Account, 
credited  as  per  discount  register  for  this  day. 

The  following  loans  were  paid  to  day:    Demand—^  1225,  C.  H.  White  &  Co.,  $37600;   interest.  $12.70 
1 1216.  Union  Trust  Co..  $125000;    interest.  $208.33. .  •  -t  '204.  Kountze  Bros..  $18213.62;   interest.  $10.17. . 
Total  interest  credit.  $231.20. ...  7I»/^— 5  1221,  Laidlaw  &  Co..  $7129.50...  Jf  1206.  Spencer  Trask  &  Co.. 
$33180... 8  1 198.  F.  M.  Lockwood,  $74000. ..  .Denny.  Poor  &  Co.  request  us  to  charge  their  account  with 
loan  ^  1208  due  to-day.  $8750. 

Bills  discounted  due  to-day  per  tickler  have  been  paid  in  cash,  with  the  following  exceptions:  Discount 
#11400  has  been  protested  for  non-payment  and  charged  to  J.  H.  Newman;  protest  fees.  $1.85. ..  Gilbert 
Manufacturing  Co.  request  us  to  charge  their  account  with  discount  J  13111  .  ..Boatmen's  Bank.  St.  Louis, 
telegraph  us  to  charge  discount  JJ 13792  to  their  account. ..  .Thomas  Hill  having  failed,  we  charge  discount 
1 14«  13  to  Profit  and  Loss. . .  .Discount  J  14354  being  payable  at  this  bank  is  charged  to  the  account  of  Morton, 
Bliss  &  Co.,  notice  of  this  dis|>osition  being  sent  them  by  letter. 

First  National,  Chicago,  enclose  draft  on  their  general  account  for  $17420.90  with  instructions  to  place  to 
credit  of  their  collection  account. 

Hibernia  National,  New  Orleans,  enclose  their  draft  on  us  for  $54000  and  advise  us  to  credit  their 
collection  account. 

Detroit  National  requests  us  by  letter  to  charge  its  general  account  $4758.62  for  credit  of  its  collection 
account,  the  items  having  been  previously  advised  and  exchange  deducted  at  time  of  advice. 

Letters  advising  tlie  collection  ol  time  items  were  received  as  follows,  the  proceeds  being  charged  to  their 
collection  accounts  from  the  general  debit  book  : 

National  Bank  of  Redemption,  $14295;  charges.  $14.30. ..  .Bankers'  National.  $17521.60;  charges, 
$17.52  • .  .Denver  National, $954  35;  charges,  48c . . .  Central  Loan  &  Trust  Co..  $12980.40;  charges.  $12.98 
Galveston  National,  $125.50;  charges,  30c. ..  .Old  National.  $13950.75;  charges.  $13.95. . .  .Hibernia  National. 
$1275;  charges.  64c  ...Bank  of  California.  $174-25;  charges.  17c. ..  .Boatmen's  Bank,  $12900;  charges, 
$6.45...  Second  National,  $425.37;  charges,  55c. ..  .Columbia  National.  $15720;  charges.  $19.65. ..  .Total 
exchange  debit,  $86.99. 

The  above  time  collection  advices  include  credits  to  be  made  to  the  following  accounts: 

Bills  discounted.  $20000. . .  .Atlanta  National.  $2117.50,  less  exchange.  $2.12. . .  .First  National,  Chicago. 

$7340.75.    no   exchange  ....  Detroit    National.  $1050.   less   exchange.    $1.05  ....  Boatmen's   Bank.  St.   Louis. 

$14290.18.  less  exchange.  $7.15. ..  .Columbia  National.  Washington.  $4150.  less  e.xchange.  $4.15. ..  .Bank  of 

California.  $3726.49.  less  exchange.  $9.32. . .  .Bulkley.  Dunton  &  Co..  $4697.18,  less  exchange.  $4.70. . .  .Denny. 

Poor  &  Co..  $8260.  less  exchange.  $10.33. ..  .New  York    Rubber  Co..  $4395.40.  less   exchange.  $4.40... 

Stemway   &   Sons.    $1980.  less   e.xchange.  99c.... United   States   Leather   Co..    $12124.50.  no   e.xchange.... 

W.  F.  Wakeman.  $6190.22,  less  exchange,  $7.74. . .  .Total  exchange  credit,  $51.95. 

[When  dealers  and  correspondents  are  charged  the  same  amount  of  exchange  as  we  pay  to  have  the  items  collected,  the 
net  amount  may  Iw  credited  and  no  entry  made  for  the  exchange  except  in  case  of  bills  discounted.  In  this  latter  case',  we 
would  debit  Exchange  account  for  the  amouiit  deducted,  inasmuch  as  it  would  be  the  only  loss  on  exchange  which  we 
would  sustam.  In  the  above  entries  we  have  debited  exchange  for  the  amount  charged  by  our  correspondents,  and  credited 
exchange  for  the  different  amounts  which  we  have  deducted  from  the  credits  to  dealers  and  corres,iondents  for  whom  the 
items  were  collected.] 

Checks  certified  this  day  as  per  certification-book  of  first  teller:  A-L.  $91558.92;  M-Z,  $133477.07. 

National  Bank  of  Redemption,  Boston,  instructs  us  by  telegram  to  transfer  $25000  to  the  account  of  Flour 
City  National.  Minneapolis. ...  Paid  express  charges  on  currency  sent  by  City  National.  Dallas,  $21.75. 
Metropolitan  Bank,  Buffalo,  notify  us  by  letter  to  forward  $7500  to  Columbia  National.  Washington.  D.  C.  for 
credit  of  their  account  (cashier's  check)  . .  .Paid  express  charges  on  couiwns  forwarded  by  Bank  of  California 
Sep.  29.  $1.13. 

Paid  expenses  as  follows:  Mutual  Life  Insurance  Company,  rent  for  3  months /rom  Oct.  i,  $3000.... 
Corhes.  Macy  &  Co.,  stationery,  $37.18. .  .Thomas  &  Son,  coal.  $22.50. . .  .Director  fees.  $45. .  .  Telegrams. 
$3-40. . .  .Electric  Light  Co.'s  bill.  $6.93  September  salaries.  $3350.  (Such  of  these  expense  items  as  were 
paid  by  cashier's  check  will  l>e  found  itemized  under  "cashier's  checks  issued.") 

Received  check  from  Treasurer  U.S.  in  payment  of  quarterly  interest  on  $200000  U.  S.  Bonds.  4  per  cent.. 
$2000. . .  .Received  quarterly  dividend  of  2  per  cent,  on  $50000  Hoffman  Maciiine  Co.'s  stock,  $1000. 

49 


BANK    BOOK-KEEPING 

The  following  collection  items  clue  in  this  city  to-day  have  been  protested  for  non-payment  and  returned, 
the  protest  fees  being  charged  to  the  correspondent  which  forwarded  the  paper  for  collection :  National  Bank 
of  Redemption— Hunt  &  Co.'s  note;  protest  fees  paid  to  notary  in  cash.  $1.85. . .  First  National,  Cliicago— 
draft  on  E.  O.  Lawson;  fees,  $1.30 Detroit  National— note  signed  by  Stroeter  &  Son;  fees.  $1.50. 

Industrial  Trust  Co.  return  unpaid  check  signed  by  J.  A.  Stuart,  remitted  to  us  by  Hibernia  National, 
New  Orleans.  $47-28.  .  We  return  check  remitted  to  us  by  Columbia  National.  Washington,  payment  being 
refused  by  Court  &  Co.,  City.  $372.85. . .  .Bank  of  California  returns  note  unpaid,  left  with  us  for  collection  by 
Morton,  Bliss  &  Co.,  and  charges  our  account  with  protest  fees,  $1.95, 

[Checks  returned  to  correspondents  must  be  charged  to  their  general  account,  as  they  were  previously  credited  under 
that  account  when  the  checks  were  received  as  a  deposit.  Checks  returned  unpaid  which  were  deposited  by  a  dealer,  arc 
usually  sent  to  the  dealer  and  his  check  requested  to  cover  the  amount.] 

The  following  notes  due  in  this  city  to-day  as  per  collection  tickler  have  lieen  collected  for  credit  as 
specified:  National  Lafayette.  Cincinnati,  Porter  &  Co.'s  note.  $25450;  exchange.  $25.45. . ..  Detroit  National. 
R.  E.  Lamar.  $470.80;  exchange.  47c.  . .  Flour  City  National.  Minneapolis.  Hazard  &  Son.  $9258.67;  exchange^ 
$9.26....  Metropolitan  Bank.  Buffalo.  Daniel  Frohman.  $36395.40;  exchange.  $18.20 ...  First  National. 
Chicago.  Western  Electric  Co.,  $78500;  no  charges.  Charged  to  Western  Electric  Co.  as  per  instructions. 
National  Commercial.  Albany.  L.  E.  Quigg.  $7260;  exchange.  $3.63 ....  National  Bank  of  Commerce,  Kansas 
City.  John  Monroe  &  Co..  $33296.87;  exchange.  $33.30. . .  .Total  exchange  credit,  $90  31. 

Certificates  of  deposit   issued   to-day:    Ashley  Ladue.   $375...  Mrs.  Gertrude  H.  Murdough.  $500. 
Charles  H.  Parkhurst,  $3000  . .  .Edward  A.  MacDowell.  $750. 

Cashier's  checks  issued  to-day:  JJ7601.  Harvey  Fisk  &  Sons.  $50000. . .  .JJ7602.  Dunham.  Buckley  &  Co., 
$34750  ...JJ  7603,  Goldman.  Sachs  &  Co..  $47280.15.  .  .5  7604.  Vermilye  &  Co..  $195000..  #7605  W  H* 
Kimball.  $8762.50.  .:?  7606.  U.  C.  Varick.  $313558. .  ■  .57607.  H-O  Company.  $1244271  • . .  J7608.  Columbia 
National.  Washington.  D.  C.  $7500. ..  .57609.  Mutual  Life  Insurance  Co..  $3000. ..  .57610.  Corlies.  Macy  & 
Co..  $37.18.  .57611,  J.  C.  Hendrix.  $833.33.  ■  576i2.  E.  O.  Leech,  $416.67  . .  .57613,  H.  H.  Swasey.  $533.33 
...57614.  N.J.  Stone.  $166.66. ..  .57615.  H.  K.  Nevius.  $125. .  .57616,  W.  M.  Bushncll,  $125  57617 
J.  W.  O'Neill.  $100  . .  .57618,  Bertha  Crocker.  $60. . .  .57619.  Charles  Mann.  $45. . .  .57620,  S.  Mountain,  $75.' 

Customs  checks  issued  to-day:  5381.  Denny.  Poor  &  Co..  $3560.20. ..  .5  382,  New  York  Rublicr  Co., 
$1170  .5383,  Edward  King,  $825. .  .5384.  Andrew  McLean  &  Co..  $349.27. . .  .5385.  Denny.  Poor  &  Co." 
$24.75   -5  386,  New  York  Rubl>er  Co.,  $13.45 ...  .5  387.  Andrew  McLean  &  Co..  $92. 18. 

The  following  checks  and  certiticates  were  paid  by  the  first  teller,  or  received  from  the  clearing-house  : 

CasAur's  Checks— 'X  7^X2.  James  G.  Cannon.  $8152  50. ..  .57535.  Wm.  H.  Porter.  $1942.21  ...57589 
J.  Edward  Simmons.  $92.46  . .  .57592.  Ellis  H.  Roberts.  $160.48. . .  .57594.  W.  H.  Rogers.  $38.04.  .  .  .57599 
Morton.  Bliss  &  Co..  $20000. ..  .5  7611.  J.  C.  Hendrix.  $833.33. ..  .5  7612.  E.  O.  Leech.  $416.67..  57613" 
H.  H.  Swasey.  $333-33  -..57614.  N.  J.  Stone,  $166.66. ..  .5  7616.  W.  H.  Bushnell.  $125  57617  I  W 
O'Neill,  $100. . .  .57618,  Bertha  Crocker.  $60.  "  J-       - 

Certificates  0/  Deposit— Chsirhs  Dudley  Warner.  $2500...  R.  W.  Gilder,  $490  ...E.  C.  Stedman 
$72.16 Mrs.  William  C.  Whitney.  $3450.90. 

Customs  checks  returned  by  Assistant  Treasurer:  5374.  $358.29  . .  .5375.  $183.40. . .  .5376.  $1269.95 
5377.  $76.19  ...5378.  $17-25... 5  379.  $250... 5  380.  $332.82. 

Certified  checks  paid  this  day  (these  checks  will  first  be  entered  in  the  certification-book  under  date  of 
October  2,  the  amounts  written  in  red  ink  and  the  total  carried  to  the  general  debit  book):  Bulkley.  Dunton  & 
Co..  $48700....  Knickerbocker  Trust  Co..  $75000. ..  .Morton,  Bliss  &  Co..  $35000. ..  Samuel  Sloan    $25000 
$8618.14  ..  .Total,  $192318.14. 

The  following  correspondents  should  be  credited  for  i  month's  interest  upon  the  average  monthly  balance 
of  their  accounts  at  the  rate  of  2  per  cent,  per  annum : 

Atlanta  National,  average  balance,  $15000.  ..First  National.  Chicago,  average  balance,  $451900.... 
Bank  of  Kentucky,  average  balance,  $107300. 

[Correspondents  who  keep  a  deposit  with  us  are  allowetl  interest  upon  the  average  amount  of  their  credit  balances.  The 
credit  of  interest  to  banks  is  usually  made  upon  the  last  day  of  the  month  and  an  interest  slip  mailed  to  each  bank,  showing 
the  balance  for  each  day  during  the  month,  taken  from  the  balance  ledger  after  the  exchanges  frr,m  the  clearing-house  have 
been  deducted  for  that  day.] 

Received  certificate  from  Treasurer  U.  S.  of  the  destruction  of  $3840  of  mutilated  notes  belonging  to  this 
bank.     Deposited  this  amount  in  subtreasury  of  N«w  York  in  legal  tenders. 

[This  amount  is  charged  to  Circulation  account  inasmuch  as  the  circulation  is  reduced  that  amount  for  the  time  being 
National  banks  pay  a  semi-annual  tax  of  one-half  per  cent,  upon  the  average  amount  of  their  circulation,  it  is  therefore 

50 


THE    GENERAL    BOOK-KEEPER 

evident  that  this  sum  which  is  temporarily  withdrawn  from  circulation  should  be  deducted  until  the  new  notes  have  been 
received  to  replace  them.  The  new  notes  will  be  forwarded  from  Washington  upon  advice  of  deposit  by  Assistant  Treasurer 
and  upon  their  receipt  Circulation  account  will  be  credited.] 

Forwarded  to  Treasurer  U.  S.  for  redemption  $20000  notes  of  other  National  banks,  requesting  him  to 
send  us  $1  com  certificates  in  exchange.  ^ 

[This  will  be  charged  to  the  account  of  "  Other  Funds  with  Treasurer  U.  S.."  which  account  will  also  be  credited  when 
the  new  cert.hcates  are  received.      1  he  Treasury  I>epartment  provides  that  the  account  of  "  5  per  cent.  Redemption  Fund  " 
shaJI  remain  at  a  fixed  amount,  which  necessitates  the  keeping  of  sums  sent  to  be  redeemed,  separate  from  tLt  account 
Ihe  express  charges  on  amounts  sent  fur  redemption  are  paid  one-half  by  the  bank  and  one-half  by  the  Treasury  Depart^ 
mat.     1  ne  charges  are  deducted  by  the  Treasurer  from  the  amount  to  be  returned,  expense  being  debited  when  the  funds 

Z.T1     T    r  "";■     ^r"*"*^'  "''"  ''^"  ^'"'°"^'  '^"'^  "«^-  -^  redeemablV  at  any  subtreasurv  of  the  UnU^ 

States,  no  entry  being  required  as  U.  S.  Certificates  of  Deposit  or  other  funds  would  be  received  in  immediate  return.] 

Exchange  account  debit:  On  foreign  time  collections  which  would  have  been  entered  in  collection  and 
^.ttance  registers  as  per  letters  of  advice,  $86.99. .  -  -On  cash  collection  remittances  from  collection  credit 

DOOK,    #1/1. 25* 

Exchange  account  credit:  On  bills  discounted  as  per  discount  register,  $172.85..  Deducted  from 
deposit  tickets  as  shown  under  second  teller's  proof,  $,2.52. . .  On  foreigiwime  collectio'is  credited  to  del  e" 
UcklerSI".      "''■   *^'-^^    •••''"  ''''  '""'  ^""""°"=*  -'^^"^d  to  correspondents  as  per  city  collection 


FIRST    PERIOD. 


GENERAL    DEBIT    BOOK. 

New  York,  October  2,  1897. 


Accounts 


Explanation 


Demand  Loans 


Tint*  Loans 


Hibernia  Nat..  New  Orleans 
Bills  Discounted 
^  Denny,  Poor  A  Co. 

J.  H.  Newman 

Gilbert  Manufacturing:  Co. 

Boatmen's,  St.  Louis 
Profit  and  Loss 

Morton,  Bliss  A  Co. 
First  National.  Chicago 
Hibernia  National 
Detroit  National 

Nat.    Bank     of    Redemption. 

Boston 
Bankers'  National,  Chicago 
Denver  National 
Central  Loan  and  Trust  Co., 

Des  Moines 
Galveston  National 
Old  National.  Grand  Rapids 
Hibernia  National 
Bank  of  California 
Boatmen's.  St.  Louis 
Second  National.  Toledo 


Haney  Fisk  &  Sons  jf  1257 

Dunham,  Buckley  &  Co.  jj  1258 
Goldman,  Sachs  &  Cu.  f  1259 
Vermilye  &  Co.  f  1360 

Steinway  it  Sons  $  ia6t 

Gilbert  Mfg.  Co.  f  1,62 

Redmond,  Kerr  &  Co.  #1263 
W.H.Kimball  9,364 

I'aid  nole  as  per  letter,  9/29 
Per  Discount  Register 
Time  loan  3(1208,  chg.  to  acct., 

as  per  letter.  lo/i 
Discount  1 1 1400,  protested 
Protest  fees  on  above 
Discount  #13111,  chg.  to  their 

•cct.,  as  advised 
Discount  Hi  3792.  as  per  telegram 
Discount  #14113.    ThomasHill 

having  failed 
Discount  #14354 
Draft  for  credit  Collection  acct. 


Advice  of  Time  Collections 


A-L 


U-Z 


Banks 


8750 


42760 


18 


40000 


Collec. 
tions 


6000 
.85; 


18235 


SO 


89140 


17420^90 
54000 
475862 


General 


I  500001 

I  34750 
4728015 
195000 
12562  50 
5050 

"6739  57 
880631 


387035 


>9 


1500 


1428070 

1750408! 

953,87 

i 

1 2967 '42 

1 25 '20 

1393680 

« 274136 

174,08 

'289355 

424,82 


5* 


BANK    BOOK-KEEPING 


GENERAL    DEBIT    BOOK— Continued. 


Accounts 

Explanation 

A-U 

MX 

Banks 

1    ColUc- 
1      tions 

:    General 

Columbia  Nat.,  Washington 

Advice  of  Time  Collections 

15700 

35 

Exchange 

On   Time    Collections  advised 
per  Collection  Rexister 

8699 

On  Cash  Collections  as  per  Col- 
lection Credit  Book 

171 

25 

Certifications 

Nat.  Bank  of  Redemption 

City  National,  Dallas 

Dealers  per  Certification  Boolt 
Transferred  to  credit  of   Flour 

City  Nat.,  as  per  telegram 
Express  ch>{s.  on  currency 

91558 

92 

'33477 

07 

25000 
21 

75 

Metropolitan  Bank,  Buffalo 

Forwarded  per  cashier's  check  to 
Columbia  Nat.,  WashinKton 

7500 

Bank  of  California 

1 

•3 

Expense 

Rent— Mutual  life  Ins.  Co.  for 

3  mu*.  in  advance 
Stationery —Corlics,  Macy  *  Co. 
Coal— Thomas  ft  Son 
Directors'  fees 
Telegrams 
Electric  Light  Co.'s  bill 

3000 

37 
22 

45 
3 
6 

18 
50 

40 
93 

Nat.  Bank  of  Redemption 

September  salaries 

Protest  feeson  HuntftCo.'snute 

I 

85 

3350 

First  National,  Chicago 

K.  O.  Uwson 

1 

30 

Detroit  National 

Stroeter  &  Son 

I 

50 

Hibernia   National 

J.  A.  Stuart's  check  returned  by 
Industrial  Trust  Co. 

47 

28 

Columbia  Nat.,  Washington 

Court  &  Co.'s  check  returned 

372 

85 

Morton.  Bliss  A  Co. 
Western  Electric  Co. 

Note    returned    by     Bank    of 
California,  protest  fees 

Note,  City  Coll.  Tickler,  chgd. 
as  per  letter  of  instructions 

1 

78500 

95 

Denny,  Poor  A  Co. 

Customs  check  ^(381 

3560201 

New  York  Rubber  Co. 

"        #385 

24 

75 

1170 

Edward  King 

Andrew  McLean  A  Co. 

"        «386 
"        «383 

82s 

«3 
349 

45 

27 

Cashier  Account 

"        8  »87 
$7413,  James  G.  Cannon 
1 7515.  Wro.  H.  Porter 

92 

18 

8152 
1942 

50 

21 

1 7S8<),  J.  Edward  Simmons 
tlSV,  Ellis  H.  Roberts 
tTS-M.  W.  H.  Rogers 

9246 
16048 

3804 

f  7SWi  Morton,  Bliss  &  Co. 

20000 

«76ii,  J.  C.  Hendrix 
«76i2.  E.  0   Uech 

^33  33 
41667 

87613.  H.  H.  Swasey 
«76u.  N.J.Stone 

333 
166 

33 
66 

#7616,  W.  M.  Bushnell 

125 

«76i7,  J.  W.  oNeill 

too 

S7618,  Iterthu  Cr<Kker 

60 

Certificates  of  Deposit 

Charles  Dudley  Warner 
R.  W.  Gilder 

2500 
490 

E.  C.  Stcdnian 

7216 

Customs  Checks 

Mrs.  William  C.  Whitney 

S  374,  Returned  by  Asst.  Treas. 

«375.           

«376.           

«377,           -           "             " 

3450 

358 

.183 

1269 

76 

90 
29 
40 
95 
'9 

L 


THE    GENERAL    BOOK-KEEPER 


GENERAL    DEBIT    BOOK -Continued. 


Accounta 

Bxplaaatieo 

A-L 

1 

u-z 

• 

Banka 

Coilec 
tions 

General 

Customs  Checks 

1 178,  Returned  by  Asst.  Treas. 

17 

25 

Certified  Account 

8  379,            

f3«o,           * 

Paid  per  Certification  Book 

250 

332 
I92318 

82 
14 

Interest  to  Correspondents 

Atlanta  National                  25.00 
First  National,  Chicago     753.17 
Bank  of  Kentucky              178.83 

957 

Circulation 

Received  certificate  of  destruc- 
tion of  mutilated  notes  from 
Treasurer  U.  S. 

i 

3840 

Other  Funds  with  Treas.  U.  S 

,  Forwarded  National  bank  notes 
for  redemption 

i 

1 

20000 

Debits 

Collection  Debit  Rook  total 
Footings  of  l>ebit  Books 

495857 
643336 

28 

485974 

77 
04 

,1140236 
I1378503 

30; 

48; 

•79633 

22 

33 

723816 

269868 

45 

1023983  75 
26986845 

'37850348 
72381604 

643336  33 

403950805 

GENERAL    CREDIT    BOOK. 


FIRST    PERIOD. 


New  York,  October  2,  1897. 


Accounta 

Explanation 

A-L 

u  z 

Banks 

1 

Collec- 
tions 

General 

Stelnway  A  Sons 

Time  Loans                        Stj6i 

12500 

Gilbert  Manufacturing  Co. 

«i26a 

5000 

Redmond,  Kerr  A  Co. 

"         "                                    «"«3 

16492 

•9 

Interest 

On  Time  I.oans  made  this  day 

On  I>emand  I.<>ans  paid  this  day 

U.  S.  Bonds,  4S,  $200000 

950000  Hoffman  Machine  Co.'s 
stock 

403 

231 

2000 

1000 

69 
20 

Exchange 

Per  Discount  Register     t>73.85 

Second  Teller's  deposits       12.52 

Time  Collections,  Foreign    51.95 

City         Q0.31 

327 

63 

Discount 

Charged  Sundries  per  Discount 
Register 

3403 

49 

Bills  Discounted 

Collected  this  day  per  Discount 
Tickler 

Charged  10   Collection  Agents, 
as  per  letters  of  advice 

608446 
20000 

97 

Chas.  H.  Baker 

Credited  per  Dis.  Reg.    f  15160 

I417 

87 

Redmond.  Kerr  A  Co. 

#15161 

14845 

W.  F.  Wakeman 

#15162 

643690! 

Western  Electric  Co. 

«i5«63 

24687 

50 

Stelnway  A  Sons 

#,5,64 

56534150 

Andrew  McLean  A  Co. 

#15165 

14648 

23 

Elliot  L.  Butler 

"         *•         "            #15166 

15909 

33 

#«5"67 

485906' 

Ceo.  C.  Flint  Co. 

# 151601 

490839! 

Bulkley,  Dunton  A  Co. 

"          "           •*              #.5.70! 

:'437o« 

4'l 

53 


BANK    BOOK-KEEPING 


GENERAL    CREDIT    BOOK— Continued. 


Accounta 


Explanation 


William  Clark 
John  L.   Riker 
Morton,  Bliss  St  Co. 
Demand  Loans 


Time  Loans 


First  National,  Chicaero 

HIbernia  Nat..  New  Orleans 

Detroit  National 

Atlanta  National 

First  National,  Chicago 

Detroit  National 

Boatmen's,  St.  Louis 

Columbia  Nat.,  Washinarton 

Bank  of  California 

Buikley,  Dunton  &  Co. 

Denny,  Poor  &  Co. 

New  York  Rubber  Co. 

Steinway  A  Sons 

United  States  Leather  Co. 

W.  F.  Wakeman 

Certified  Account 

Flour  City  Nat.,  Minneapolis 

Industrial  Trust  Co. 

Bank  of  California 
Nat.  Lafayette,  Cincinnati 
Detroit  National 
Flour  City  National 
Metropolitan  Bank,  Buffalo 
First  National,  Chicago 
Nat.  Commercial,  Albany 
National  Bank  of  Commerce. 

Kansas  City 
Certificates  of  Deposit 


Credited  per  Dis.  Reg.    f  15171 

«iS«7a 

«'5«73 

#  lias.  C.  H.  While  *  Co. 
tf  1116,  Union  TrtiM  Co. 
)tiao4,  Kountze  Bros. 

$  1131,  l.aidUw  &  Co. 

9  iao6,  Spencer  Trask  &  Co. 

f  ii<)8,  F.  M.  Lockwood 

#  iao8.  Denny.  Poor  &  Co. 
Draft   for  credit  of  Collection 

acct. 
I>raft  for  credit  Coll.  acct. 

Time  Collections  per  Coll.  Reg. 


A-L 


443 


Checks  certified  by  tint  Teller 
Transferred  from  acct.  of  Nat. 

Bank  of  Redemption 
J.  A.  Stuart's  check  retomed 

unpaid 
Protest  fees  on  note  relumed 
Time  Coll.  as  per  City  Tickler 


Cashier  Account 


Ashley  Ladoe 

Mrs.  Gertrude  H.  Murdoogh 

Charles  H.  Parkhurst 

Edward  A.  MacT>owell 

f  7«oi,  Harvey  Fisk  A  Sons 
1 7*»».  Dunham,  Buckley  &  Co. 
$  7*103,  Goldman,  Sachs  Jk  Co. 
1 7604,  Vermilye  A  Co. 
f  7«o5,  W.  H.  Kimball 
t7M>,  U.  C.  Varick 
f7«o7,  H-O  Company 
f  7&>8.  Columbia    Nat.,  Wash- 
ington 
1 7609,  Mutual  Life  Ins.  Co. 
S  76>o,  Corlics,  Macy  A  Co. 
#7«ii,  J.  C.  Hendri* 
«76",  E.G.  Leech 


25 


U-Z 


156880 
779*032 


Banka 


469248 
824967 


439» 

1 97901 

1212450 

618248 


211538 

734075 

104895 

1428303 


4t45 
3717 


35000 


'95 

25424j55 

470:33 

9249:41 

3637720 

78500 

7256 


33263 


37 
S7 


Coliec- 
tiona 


General 


I7420I9O 
54000] 

4758  6j| 


37600! 
125000 
1821362 

712950 
33180 
74000 

8750 


47 


28 


225035  99 


375 

500 

30CO 

750 

500CO 

34750 

47280 

195000 

8762 

3' 35 
12442 


7500 

3000 

37 

833 

41667 


»S 


50 
58 
71 


18 
33 


THE    GENERAL    BOOK-KEEPER 


GENERAL    CREDIT    BOOK— Continued. 


Accounta 

Explanation 

A-L 

M-Z 

Banks 

Collec- 
tions 

General 

Cashier  Account 

#7613.  H.  H.  Swasey 
«7<ii4.  N.J.Stone 
#7615.  H.  K.  Nevius 
«76i6,  W.  M.  Bushnell 
t7'i«7,  J.W.O-Neill 
t76i8.  Bertha  Crocker 

333 
166 
125 
125 
100 
60 

33 
66 

Customs  Checks 

tl6t<h  Charles  Mann 

IfjCxo,  S.  Mountain 

1 381,  I>enny,  Poor  A  Co. 

#382,  New  York  Rubber  Co. 

t  383,  Edward  King 

#384,  Andrew  Mclean  &  Co. 

1 385,  Denny,  Poor  &  Co.              , 

$386,  New  York  Rubber  Co.       j 

45 

75 

3560 

1170 

825 

349 
24 
13 

20 

27 
75 
45 

Atlanta  National 

Jf  387,  Andrew  Mcl^ean  &  Co. 
Interest  on  average  balance  2% 

25 

178 
992041 

92 

18 

First  National,  Chicago 
Bank  of  Kentucky,  Louisville 
Credits 

.t                 it              ,, 
Footings  of  Credit  Rooks 

369932 

559"4 

89 
35 

382985 

II 

•7 
83 
'9 
70 

186498 

58 

633295 

54 

I241192 

262725 

38 

'53957005 
26272538 

1 

1241 192 
633295 
S59"4 

70 
54 
35 

4235898 

02 

93*  The  General  Balance  Le<)g:er. — After  writing  up  the  general  debit  and  credit  books  for 
ihe  first  period,  the  student  will  transcribe  the  general  balance  ledger  as  illustrated  on  pages  56 
and  57.  The  general  ledger  will  then  be  opened  from  the  general  balance  ledger,  beginning  with 
the  balances  under  each  account  as  shown  under  date  of  October  i.  The  small  figures  below 
the  balances  represent  the  total  debit  and  credit  to  each  account  as  posted  from  the  general 
debit  and  credit  books  at  the  close  of  business,  October  i.  These  latter  amounts  should  appear 
in  the  general  balance  ledger  in  red  ink,  and  are  to  be  posted  to  the  general  ledger  by  the  student 
after  he  has  transferred  to  it  the  balances  under  date  of  October  i. 

The  pur|)ose  of  the  balance  ledger  follows  from  the  necessity  of  preparing  a  statement  of  the 
bank's  condition  each  morning  before  ten  o'clock.  This  statement  affords  the  president  the  facts 
upon  which  to  base  his  decisions  for  the  day.  It  being  impossible,  therefore,  to  post  all  of  the 
previous  day's  transactions  in  detail  to  the  general  ledger,  the  single  total,  both  debit  and  credit 
of  each  account,  is  thus  jxjsted  from  i>encil  footings  in  the  general  debit  and  credit  l>ooks  to  the 
general  balance  ledger,  and  the  new  balance  carried  forward.  These  new  balances  give  the  material 
for  the  .Statement,  and  will  also  serve  as  a  trial  balance  of  the  general  ledger  when  posted. 

All  of  the  balances  will  be  transferred  to  the  general  ledger  as  given,  r.xrf/>/i//j^  under  Customs^ 
Certificates  of  Deposit,  ami  Cashier  accounts.  Items  under  these  accounts  should  be  posted 
sei^arately,  and  the  debit  amount  posted  ///  every  case  opjxjsite  the  credit  amount.  The  red-ink 
footings  shown  on  the  general  balance  ledger  will  not  l)e  entered  under  these  three  accounts,  but 
itemized  in  detail  as  s|>ecified  on  the  following  pages. 

Payment  of  items  l)elonging  to  these  accounts  should  not  be  made  without  first  comparing 
with  the  amount  entered  in  the  ledger  when  issued.  Certified  checks  when  paid  are  entered  in 
the  certification-book  as  explained  under  duties  of  paying  teller  (35)  and  need  not  be  itemized 
in  the  ledger. 

SS 


BANK    BOOK-KEEPING 
GENERAL   BALANCE   LEDGER— DEBITS. 

October  1.  October  2. 


BILLS  DISCOUNTED 

DEMAND  LOANS 

TIME   LOANS 

STOCKS  AND  BONDS 

U.S. BONDS  TO  SECURE  CIRCULATION 

PREMIUM  ON  U.  S.  BONDS 

EXPENSE 

TAXES 

EXCHANGE 

INTEREST  TO  CORRESPONDENTS 

COLLECTION  BANKS 

CASH 

FIVE  PER  CENT.  REDEMPTION  FUND 

TREASURER  U.  S. 


Dr. 


3549153 

aj»oS4 

3006659 

3504Q0 

2939826 

320175 

486704 
600000 

4«4a4 
32231 

17' 
24000 


31362 

34SO 

418843 

170750 

4760638 

3228742 

rfooo 

lOOOO 

toooo 


«5»aW44 


7« 

97 

75 
3a 
45 

66 
22 

/6 


26 

Si 

58 

oS 


70 


9« 


Cr. 


459000 

175120 

400000 

lojao 


It 


H0470 
33 1 93  92 

toooo 


Dr. 


i33"38 

3x81929 

2860001 

476384 


ot 


54 


4<»4a4 
32403 
24000 

34813 

479"3 

4669999 

27000 

lOOOO 


I57673I7 


75 
59 
32 
45 

66 
38 


07 
60 
05 


87 


Cr. 


The  following  certified  checks  are  outstanding  and  are  to  be  entered  in  the  certification-book  under  date 
of  October  i,  preceding  those  which  have  already  been  entered  from  the  paying  teller's  work  for  the  first 
period:    Bulkley.  Dunton  &  Co..  $48700.... G.  G.  Haven.  $61480.50. ..  .John   L  Hiker.  $275.45   ...Morton, 

Rliss  &  Co.,  $20000.  $35000.  $6981.86 Knickerbocker  Trust  Co..  $75000.  $469.25.  $372.75 Samuel  Sloan'. 

$50000,  $25000.  $8618.14.  These  amounts  should  be  checked  off,  the  dealers  having  been  previously  debited. 
The  outstanding  items  under  the  following  accounts  should  be  entered  separately  in  the  general  ledger: 
Cashier  Account— k^^x.  10,  33250.  Hazard  &  Co..  $21.69;  Sep.  27.  #7412.  James  G.  Cannon.  $8152.50; 
Sep.  28.  37480.  Lazard  Fr^res.  $12320;  Sep.  29.  37535.  \Vm.  H.  Porter.  $1942.21;  Sep.  30.  37560.  C.  K.  Sprague! 
$4127.58;  Sep.  30.  37582.  Speyer  &Co..  $25000;  Sep.  30.  57586.  .Seth  Low.  $4985.42;  .Sep.  30.  37589.  J.  Edward 
Simmons.  $92.46;  Oct.  i.  37591.  D.  O.  UnderhiU.  $800;  Oct.  1.  37592,  Ellis  H.  Roberts.  $160.48;  Oct.  i. 
37594.  VV.  H.  Rogers.  $38.04;  Oct.  i.  37507.  Allen  Durand.  $11.27;  Oct.  i,  37598.  Blair  &  Co.,  $9726.62; 
Oct.  I,  37599.  Morton.  Bliss  &  Co.,  $20000;  Oct.  i,  37600.  United  States  Leather  Co..  $7870. 

[The  number  of  a  cashier's  check  does  not  sufficiently  establish  its  identity,  consequently  the  name  of  the  person  to  whom  it 
is  given  should  be  entered  in  the  ledger  when  issued.  Cashier's  checks,  excepting  for  salaries  of  clerks,  are  rarely  presented  for 
payment  the  same  day  as  issued,  but  arc  generally  returned  among  the  exchanges  from  the  clearing-house  on  the  day  following.] 


THE    GENERAL    BOOK-KEEPER 

GENERAL    BALANCE    LEDGER -CREDITS. 

October   1 .  October  2. 


Dr. 

Cr. 

Dr. 

Cr. 

CAPITAL   STOCK 

1200000 

1200000 

SURPLUS    FUND 

600000 

600000 

PROFIT  AND    LOSS 

22326 

04 

22326 

04 

DISCOUNT 

II9617 

4SO 

70 

120067 

70 

INTEREST 

102725 

J90 

64 

19 

IO3315 

83 

EXCHANGE 

/*/ 

S5 

375 

iqo 

09 

60 

383 

84 

COMMISSION 

4434 

23 

99 

4457 

89 

PROFIT   ON    BONDS 

1000 

1000 

CIRCULATION 

540000 

540000 

BANKS 

370400 

46I237I 

410005 

67 

90 

4652577 

57 

A-L   LEDGER 

t>/S3t>4 

4330620 

557300 

90 

to 

4272557 

M>Z  LEDGER 

59037» 

70 

3967I7I 

421840 

21 

2/ 

3798638 

75 

CERTIFICATES    OF    DEPOSIT 

aooo 

2II6I 

3197 

73 

40 

22359 

13 

CERTIFIED   ACCOUNT 

216400 

273457 

274840 

88 

07 

331897 

95 

CASHIER    ACCOUNT 

425700 

I 1974 I 

401207 

09 

iS 

95248 

27 

CUSTOMS  CHECKS 

1 1S40 

97 

1 1840 

24S7 

15926844 

97 

90 

91 

2487 

90 

15767317 

87 

Customs  Ckfcks—OcX.  I.  G.  G.  Haven,  3374,  $358.29  ...Denny.  Poor  &  Co..  3375,  $183.40;  3376. 
$126995. . .  .Bulkley.  Dunton  &  Co..  3377.  $76.19. . .  E.  R.  Durkee  &  Co.,  3378,  $17.25. . .  .Gilbert  Manufac- 
turing Co.,  3379.  $250 New  York  Rubber  Co.,  3380.  $332.82. 

Certificates  of  Deposit— Feb.  14.  1896.  Baul  &  Co..  $1359.13;  Mar.  12.  1897.  Henry  H.  Rogers,  $4500; 
Apr.  27,  R.  S.  Hayes.  $5000;  June  2,  Charles  Dudley  Warner.  $2500;  July  i,  R.  W.  Gilder,  $490;  July  17, 
Whitelaw  Reid.  $2120.60;  Aug.  25,  E.C.Stedman.  $72.16;  Sep.  i,  F.Cromwell,  $278.50;  Sep.  19,  Mrs.  William 
C.  Whitney.  $345090;  Oct.  i.  F.  P.  Olcott.  $2587.84. 

94«  Posting;. — .As  has  been  explained,  posting  to  the  general  balance  ledger  precedes  posting 
to  the  general  ledger  and  the  student  will  follow  that  order.  In  |>osting  to  the  general  ledger  from 
the  general  debit  and  credit  books,  the  student  will  post  in  detail  under  Customs,  Certificates  of 
Deposit,  and  Cashier  accounts,  making  full  explanation  of  each  item  in  the  ledger.  The  book- 
keeper finds  it  convenient  where  such  accounts  cover  several  pages,  to  keep  a  loose  sheet  within 
the  ledger  containing  the  account  in  brief;  that  is,  merely  posting  the  total  debit  and  credit  as  in 

57 


! 


BANK    BOOK-KEEPING 

other  accounts,  and  afterwards  posting  the  items  to  the  ledger  account  in  full.     The  total  debit 
and  cred.t  as  posted  under  each  account  is  added  to  the  pencil  footings  of  the  pre  iou    da^^ 

"^r^^:!-;::::^.  - ''-  -^-^'^  -^-  -  --^p^-  -th  the  j^ian^sh^::^ 

The  footings  of  the  sjx^cial  columns  are  next  p<«ted  to  their  respective  accounts  after  which 
the  aggregate  of  the  general  debit  book  will  be  posted  to  the  creiit  of  Cash  account  and  he 
aggregate  of  the  general  credit  book  to  the  debit  of  Cash  account. 

.     1??*  7^  ^^«*^««'  Ledgers.— The  amounts  in  the  special  columns  of  the  general  debit  and 
credit  books  may  now  be  posted  to  the  dealers',  bank,  and  collection  ledgers.     The  certification- 

bTthe^"t'      :t  at  iLr'  'TT'  '"^  '-'''-'^  '^"^^'  ^-^  ^""^^^'""  '-^^  win  als^^Xd 
by  the  student  at  th.s  po.nt.     The  Uems  are  simply  checked  off  as  posted,  the  ledger  folios  not 

met^h^oTfh        '  "  •^"7""-     '"  '''^'  '^"^^^^  *^^  ^^^-"^«  --  --"«-^  According  to  the  vowe 
method,  the  position  of  an  account  being  thus  readily  located 

th.  H^^r'*"^  to  the  dealers' ledgers  the  following  abbreviations  are  in  use  as  explanations-  If 
the  debit  amount  consists  of  but  a  single  check,  no  explanation  is  made;  if  more  than  one  a  check 
mark  is  made  in  the  explanation  column;  if  a  certified  item,  the  letter  C,  followed  by  a  chick 
mark  if  more  than  on e^  Straight  deposits  require  no  explanation.  N  for  note,  R  f c  em^tance 
I)  for  discount  and  other  symbols  may  be  used  with  discretion.  Collection  it^ms  are  designed 
by  the  name  of  the  payer.  Dates  should  always  be  entered,  the  current  date  governing  in  ^e  of 
Items  advised  by  correspondents.  K"vcrning  m  case  ot 

n,.1.7^', ';'^7'1!"'k',  ^"^^^'"  ''^""''^  ^  '^^'^"^^^  ^'  '^^  ^"^  "f  ^^^h  month.  The  student  will 
make  a  list  o  the  balances  of  each  of  these  ledgers  and  compare  the  total  with  the  balance  shown 
m  the  general  ledger  at  the  end  of  each  period. 

MORTON,    BLISS  &  CO. 


1^ 

Aug. 

I 

• 

V 

8316 

52 

Aug. 

I 

Balance 

165 180 

Q7 

c  ^ 

Note— .Speyer  &  Co. 

21374 
9500 

60 

Kimball  &  Co. 

26209 
316 

25 

50 

Express  on  coupons 
Exchange— Dallas,  Tex. 

I 

4 

75 
83 

H.  W.  Lewis 
Coupons— C.  &  A.  R.  R. 

2790 
150Q 

2 

V 
c  v/ 

Draft— Armour  &  Co. 
Dis— Smith  &  Son 

31210 

44750 

17813 

6ono 

18 
22 

a 

Dis  jj  12845 

Randolph  &  Co. 
Kidder,  Peabody  &  Co. 

95000 

54102 

2600 

lOOOO 

47 



Protest  fees  on  above 

— . 

I 

35 

A.  11.  NichoU 

450 

FORM  OF  dealers'  LEDGER. 

On  the  following  page  is  presented  the  form  of  what  is  generally  known  as  the  "  Boston" 
ledger,  which  has  found  favor  among  many  banks  where  the  force  is  small.  The  B<,ston  system 
does  away  with  debit  and  credit  books,  requires  but  a  single  ledger,  and  the  entries  being  mac" 
direct  from  the  deposit  tickets  and  checks,  the  use  of  duplicate  balance  ledgers  is  thereby  av«rded 
rhe  best  system  however,  and  particularly  for  large  banks,  is  one  that  requires  the  use  of  duplicate 
edgers  as  in  this  set  one  the  old  style  or  dealers'  ledger,  and  the  other  a  skeleton  or  l^lance 
ledger^  The  balance  ledger  should  be  proved  everyday,  and  frequent  comparisons  should  be  made 
with  the  corresponding  dealers'  ledger.  The  postings  in  the  dealers'  ledger  should  be  called  back 
and  checked  from  the  debit  and  credit  books  as  a  guard  against  error.  To  facilitate  this  process, 
two  sets  of  debit  and  credit  books  may  be  employed,  and  the  checking  done  on  alternate  days. 


THE    GENERAL    BOOK-KEEPER 


THE    BOSTON    LEDGER. 


Monday,  November  x,  1897 

Tuesday,  November  3.  1897 

NaniM 

Balance 

Oeposita 

1 

Check* 

in 
Detail 

Total 
Checks 

Balance 

1 

Depositt 

Checks 
in 
;   Detail 

1 



Total 
1     Checks 

Balance 

A.  B.  Anderson 

1258 

20 

150 

42 

19 
no 

10 

238 
628 

16 

30 

38 

161 

74 

1246 

46 

D500 
317 

24 

36 
213 

90 

50 

250 

40 
66 

1813 

30 

Kenson  &  Ruring 

4812 

60 

Di9no 
500 

76 

49 
70 

877 

95 

6334 

65 

C981 
1200 

75 

100 

328 

175 
612 

16 

50 

1215 

7300 

74 

Certificates  of  Deposit 

16848 

25 

400 

19248 

25 

1500 

17748 

25 

Forward 

22929 

05 

4950 

1039 

69 

26829 

36 

2998 

99 

< 

t 

2966 

06 

26862 

29 

DEALERS'   BALANCE    LEDGER. 


NaoMs 

Monday 

Tuesday 

Wednesday 

Thursday 

Noveml>er  i,  1897 

November  3,  1897 

November  3,  1897 

I 

November  4,  1897 

Aarons,  Julius  E. 

260 

3500 
15400 

28 

25 
50 

I 
25 

25 
40 

30000 

2784 

16240 

17 

1   '49S 
395 

t2 

50 

4000 

33569 

52 

34675 

1 

1 

9C 

Abbott  &  Parkman 

IJOOO 

4000 

10 

15461 
5ucx)u 

IJOOO 

2ono 

20000 
49461 

28 
25 

22600 
500 

1 

60000 
12400 

50461 

28 

99761 

28 

Allerton.J.W.&Son 

iOOOO 

5000 

32400 
85226 

31260 

so 

80 

20 

45000 
102626 

1 

75«x) 

2S5CX) 

1 16365 

75 
40 

219865 

75 

American  Trust  Co. 

26r43o 
30000 

320942 
541650 

12 

tsnss 
45000 

120000 
185200 

58II72 

40 

S3IOOO 
36000 

405300 
709604 

547904 

40 

Forward 

S9 


BANK    BOOK-KEEPING 


@2^^^^=^^^^y  The  National  Union  Sank, 


RESOURCES. 


LOANS  AND  DISCOUNTS.  Viz: 

DEMAND  LOANS. 

•*  ••       TO  BROKERS, 

TIME  LOANS. 
MLLS  DISCOUKTED, 

BONDS  AND  STOCKS, 

U.  8.  BONDS  DEPOSITED  WITH  U.  8.  TREA8. 

PREMIUM  PAID  ON  U.  S.  BONDS. 

CDRRRNT  EXPENSES. 
TAXES  PAID. 
eXCHANOE, 
INTEREST  PAID, 

DQE  FROM  NATIONAL  BANKS. 
**        **       8TATI  BANKS. 


CASH.  Viz: 

EXCHANGES  FOR  CLEARING  HOUSE. 

CASH  ITEMS, 

NOTES  OF  THIS  BANK  ON  HAND, 

''gold  coin. 

gold  trea9.  certificates. 
"    clearing  house  crfs. 

SPECIE.  Vlzi/ SILVER  DOLLARS. 

SILVER  CERTIFICATES. 

SUBSIDIARY  SILVER  COIN. 

^MINOR  COIN, 
LEGAL  TENDER  NOTES. 

U.  S.  CERTIFICATES  OF  DEPOSIT. 
TREASURY  NOTES. 

H  REDEMPTION  FUND  WITH  TREAS.  U.  S. 
OTHER  FUNDS  WITH  TREAS.  U.  8. 


^ 


J^ 


^f5o 


33/ 


^^6^  It 

/// 


^c 


in^ 


f 


^^ 


Hi) 


i^^i^C?C> 


3^7 

iV, 


-^'o// 


^0  3 
^HSri3> 


^>C^i 


/^o/'^ 


/f/^ 


3^ 


///// 


0^0 


ooc 


I^1±hi1i1 


oy 


6o 


THE    GENERAL    BOOK-KEEPER 

ofe^n  ^U<uA,  o/Lie  yo/        OCT  1         ^^97- 


LIABILITIES. 


CAPITAL  STOCK, 
SURPLUS  FUND. 

PROFIT  AND  LOSS, 

DISCOUNT, 

INTEREST. 

EXCHANGE. 

COMMISSION. 

FROHT  ON  BONDS, 


(Riovlttioa, 

DUE  TO  NATIONAL  BANKS, 
«      ••   STATE  *• 

INDIVIDUAL  DEPOSITS.  Viz: 
A  to  L— Ledgvr. 
M«o£-     " 
CartiBeMM  of  Dopoatt. 

OwtHM  Cbecka. 

CASHIER'S  CHECKS  OUTSTANDING. 

CUSTOMS  "  •• 


/03 


RESERVE, 

DUE  TO  BANKS.      J^  Ifi^^^S  '^^.  ^^ 
••    FBOM  BANKS.       ^j^  J>3>(oC 


i-i 


^^y 


INDIVIDUAL  DEPOSITS 


LESS  EXCHANGES  AND  CASH  ITEMS. 


ULL::^. 


^f7 


I 


(poo 


ffl 


U^3 


/•4-t 


Ll^ 


f3 
13 

4k 


f 


yy^yi/in^lp 


S^o  ooc 


^icp^y^-^-^i^ 


.fYt 


i1 


V4, 


on'd^^i^f<^ 


o4 


63^ 


I9(ii/f^ii\^i 


O         P 


6l 


FIRST    PERrOD. 


BANK    BOOK-KEEPING 
GENERAL   BOOK-KEEPER'S    PROOF. 

New  York,  October  2,  1807. 


Notes  of  this  Bank 
Gold  Coin 

Treasury  Certificates 
C.  H.  Certificates 
Silver  Dollars 

Certificates 
Subsidiary  Silver  Coin 
Minor  Coin 
l^al  Tender  Notes 
U.  S.  Certificates  of  Deposit 
Treasury  Notes 
First  Teller's  Total 
Mixed  Currency  (Third  Teller) 

Exchanges  (Second    Teller) 

(Third  Teller) 
City  Office 
Foreign  Office 
Cash  Items 


CASH  (Balance  Oct.  i) 
Credits,  A-L 
"        M-Z 

Banks 

Collection  Banks 

General 


I>ebits,  A-L 
*•  M-Z 
"       Banks 

Collection  Banks 

General 


FlrM  Teller 


560000 

8670 
1230000 

1487 

71510 

6216 

S44 

472685 

1 10000 

105000 


3566112 

305479 
2871591 

I 3735 > 7 

573958 

ao34 

500 


20 
45 


65 
32 


97 

59 
61 

99 


559«i4 
633295 

1341193 

262725. 

•539570 


35 
54 
70 
38 
05 


643336  33 

723816  04 

'378503  48 

269868  45 

1023983 


75 


■•cmid  Teller 


3000 


30370 
1.^)0 

«5 

aoooo 


Tatal 


86 


44785 


86 


563000 

8670 

1230000 

1487 

91880 

7616 

560 

492685 

I 10000 

105000 

305*79 


20 
31 


2916377 


32 
83 


I950011 


4866389 


«9 
09 


4669999 


4235898 
8905897 


05 


OS 

07 


4039508 


4866389 


02 


THE    GENERAL    BOOK-KEEPER 

96*  The  Dealers'  Balance  Ledgfer* — The  form  of  dealers'  balance  ledger  on  page  59 
is  in  general  use  in  banks  where  duplicate  ledgers  are  used  for  dealers'  accounts.  The  credit 
balances  are  carried  forward  each  day  in  pencil,  and  the  total  deposits,  collections,  etc.,  written 
immediately  above,  in  order.  On  the  debit  side,  the  aggregate  amount  of  checks  paid  through 
the  clearing-house  is  entered  in  red  ink  to  distinguish  them  from  those  paid  over  the  counter, 
that  they  may  be  added  separately  and  proved  with  the  settling  clerk's  statement.  The  aggregate 
balances  should  agree,  daily,  with  the  balance  of  the  corresponding  dealers'  ledger  as  shown  in  the 
general  balance  ledger. 

97«  The  General  Proof. — The  general  book-keeper's  proof  on  preceding  page  will  be  readily 
understood  if  carefully  studied  in  connection  with  the  three  proofs  previously  presented  (28), 
(38),  (82).  Inasmuch  as  the  dealings  of  a  bank  concern  themselves  with  cash  as  a  commodity, 
their  final  expression  will  be  found  in  the  Cash  account  and  the  fluctuations  of  the  business  therein 
faithfully  traced.  If  to  the  previous  day's  balance  be  added  the  total  of  the  general  credit 
book,  and  from  this  sum  the  total  of  the  general  debit  book  deducted,  the  remainder  should  agree 
with  the  actual  cash  on  hand. 

In  the  accompanying  proof  it  will  be  seen  that  the  cash  held  by  the  third  teller  has  been 
entered  as  "mixed  currency."  Owing  to  the  extra  demands  upon  the  time  of  the  incumbent 
of  this  position,  the  classification  of  his  currency  before  delivery  to  the  first  teller  is  usually 
not  required. 

98*  The  Daily  Statement. — The  titles  of  the  accounts  in  daily  statement  book  are  usually 
printed  that  the  amounts  may  be  quickly  entered  as  compiled  from  the  general  balance  ledger 
and  the  general  book-keeper's  proof.  It  shows  the  condition  of  the  general  ledger  as  condensed 
in  the  general  balance  ledger,  together  with  a  detailed  exhibit  of  the  Cash  account.  From  this 
statement  are  obtained  the  data  for  computation  of  reserve,  as  also  the  principal  facts  required 
in  preparing  reports  to  the  Comptroller  of  the  Currency. 

In  addition  to  the  daily  statement  indicated  above,  the  regulations  of  the  clearing-house 
enforce  the  use  of  a  statement  book  which  will  show  the  daily  averages  for  the  week  of  loans, 
discounts,  specie,  deposits,  circulation,  etc.  A  desirable  form  for  this  purpose  should  provide 
for  the  following  columns:  Date,  Due  to  Banks,  Certified  Checks,  Gross  Deposits,  Uncollected 
Checks,  Net  Deposits,  Commercial  Loans,  Total  Loans  and  Discounts,  Circulation,  Required 
Reserve,  Excess,  Legal  Tenders,  Specie,  Redemption  Fund.  By  dividing  the  total  of  each  column 
at  the  end  of  the  week  by  six,  the  daily  average  is  found,  and  complete  information  for  the 
clearing-house  statement  is  at  once  available. 

The  Daily  Statement  presented  on  pages  60  and  61  exhibits  the  condition  of  the  general 
ledger  at  the  opening  of  this  set.  As  the  student  will  be  required  to  prepare  a  similar  statement 
from  his  own  work  at  the  close  of  the  first  period,  the  photo-engraved  form  there  presented 
cannot  be  too  carefully  studied  at  this  point.  The  method  of  computing  reserve  will  be  explained 
in  detail  under  Chapter  VIII. 

MEMORANDUM   OF   TRANSACTIONS-Continued. 


99*  Second  Period. — November  i — The  loan  clerk  reports  demand  loans  made  as  follows :  it  1265. 
W.  C  Sheldon  &  Co..  $45000. . .  .Jf  1266,  A.  M.  Kidder  &  Co.,  $21871.60. . .  .jj  1267,  Dominick  &  Dickermann, 
$38900 1 1268,  Day  &  Heaton,  $75000. 

Time  Loans:  jj  1269,  proceeds  credited  to  Redmond.  Kerr  &  Co..  $40000;  interest  30  days.  $_-__;  total, 

$  31270.  proceeds  credited  to  Lord  &  Taylor.  $25000;  interest  60  days,  $ ;  total,  T  

#1271.  cretlited  to  William   Clark.  $4362.50;   interest  90  days,  $ ;   total,  $ jf  1272,  by  cashier's 


check  to  Strong,  Sturgis  &  Co.,  $95000;   interest  30  days. 


total,  $. 


.Total  interest  credited. 


Hills  discounted  debited  as  per  discount  register, 
register  for  this  day. 


.  Exchange,  Discount,  Dealers,  crediteo  as  per  discount 


63 


BANK    BOOK-KEEPING 

The  following  loans  were  paid  to-day:  Demand— t  fny   Hirvev  FUlr  tr  <;««=   *.. • 

ft  12 !Q  Goldman  Sirhe  «.r^    c,o  ,    ,     * '"57.  "arvey  »•  »sk  &  Sons.  $50000;   interest,  $250  . 

Jisr^lr'"  ''""""'•  '^""'"S""'  "''""^  """  o"  '"  K-cra.  accoun.  for  crcdi,  collection  .cco„„, 

.h.  p^rdetrz  c:ir;i;e^iTc"artirhar;™';r '"- '°",°"'"'-'  —»"-"«.  f~-  -i-ici, 

«  IS165  charees  i   10        romr.r      i*  c  ^""'""^  ^  '5i66.  charges  i  20. . . .  Bank  of  California.  Discount 

Kansas  City 'co  e  Ln  N  s'T^      h/rgTr  '  "^^       ^^''''"^'  ^-"^  of  g,„.n,erce 

Orleans.  Collection  J  ,3  larl;  4     ^Lu!J^'^^^  ^  '**»'°"^'-  ^ew 

l/l-         Dehir  Pvrh,         f       ,        '  -°     ••'"'^"^•"^1  Trust  Co..  Providence.  Collection  Nos.   19    26    changes 
r-u '   .         ^''f^^*"^'*=  ^'"'  ''^'^'S':^  on  Discount  Nos.  15166  and  15165  as  above.  ^ 

Checks  certified  this  day  as  per  certification-book.  A-L  $ •  M-Z  $ 

Paid  expenses  as  follows:    Directors'  fees.  $45  ....  Telegrams.  $7.25         October  salaries    S»co 
Expressage  on  $22000  certificates  and  notes  from  Treasurer  U   S    $3  30  ^^^    * " '  * 

Received  quarterly  dividend  of  ,,^  per  cent,  on  $300000  Klondike  Improvement  bonds. 

:=:i,  ?,s j:  ^^S^':s£S3S^^^^^ 

Commercial  Bank,  Syracuse,  re.urns  unpaid  check  remitted  to  u>  for  credit  by  Fourth  National   Phil,rf  1 
tz.  ^n-^an  ^Xlt"'  "■""""  "•  -  "'  ""'-'  '^°""""'^'''  -'^•" '■  P°y-»^n;';r d'hy 

J^      ^,6«  r  r  rK  •  .  *"'""'  »M3  M- . .  .!t7633.  Allen  Durand.  $300.      ,  7^^  E    £    ^a  °- 

r    .*,?','■  '^■,''- Ch'^'-an.  $=00      .S7636.  David  E.  Austin.  Receiver  of  Ta„s  Jijo  ' 

,„  rr  t"i  ''^-''  •»■"-  -"-  -j;^'  <o  -T"  Arr:wn?:uanTco",'^^'ir,;'s';'T3«. 

J31.60;   JJ394.  $433.62...  Lord  &  Taylor.  JJ  380.  $,200-  3  toi    SzRai        cluTr,   \J      7         ■        r^^'  ^^' 
iAc^R-y         !-»..„,.,    »         p    /-.      ^  -       *♦ -^"V-  *•■'"".  5  39''  *5o43 (»ilt>ert    Manufactunnir  Co     tf  in-* 

^^;inw^TL::^^.^--j:tS--^^ 

The  following  checks  and  certificates  were  paid  by  the  first  teller  or  received  from  the  clearing-house  • 
CasAurs  CA,cAs-i(74So.  Lazard  Fr^res.  $12320. ..  .37582.  Speyer  &  Co    $2^000        «tc«A%  „    ,' 

8  7633.  Allen  Durand.  $300. . .  .1  76^    E   E  Esdaile    i^co        *,/;«,    u  r^  /  -.'  ^"^^^^y^  *333.33.  • . . 

i-.  ^-tf     .       r  r.  .     .  tsuaile,  J250. . .  .;f  7607,  H-O  Company.  $12442.71 

C.r/.A./..,//>;^.«/     Henry  H.  Rogers.  $4500. ..  .Whitelaw  Reid.  $2.20.60        Ashl^  lldue  $,7, 
Mrs.  Gertrude  H.  Murdough.  $500. .. .  Edward  A.  MacDowell   $750  ^  ^^^ ' ' " ' 

.3«.twr.'',tr4^'s.  *^^^--  •■■*^'=-  "•^>-«3»3.  m....>M  S34,......,385,  »=«.r5.... 

CVr/j/f^,/  a«;t._(To  be  entered  also  in  the  cerlilication-book)-Chas.  H.  Baker    $io7!  to        C    C 
Haven,  $6,480.50. . . .  A.  Isclin.  Jr.,  $.500. . .  .Knickerbocker  Trust  Co.,  ,74..5o,  S3460,  uJ^^'X^^fs'.^: 


THE    GENERAL     BOOK-KEEPER 

Morton.  Bliss  &  Co.,  $29000,  $9989.19,  $20000.  $6981.86. ..  .John  L.  Riker,  $275.45 Samuel  Sloan,  $50000 

Steinway  &  Sons,  $3625.45 United  Slates  Leather  Co.,  $15610.50,  $10000,  $2400,  $60000. 

The  following  correspondents  should  be  credited  for  interest  on  their  average  monthly  balances,  rate 
2  per  cent,  per  annum  (accurate): 

National  Hank  of  Redemption.  Boston.  $378194.88. . .  .  Detroit  National,  $151881.11 Wisconsin  National, 

$65342.68 Industrial  Trust  Co.,   Providence.    $392988.25 Bank   of  California.    $570557.26 Hiberiiia 

National.  New  Orleans,  $99373.79. 

Received  from  Treasurer  U.  S.  $20000  coin  certificates  in  exchange  for  National  bank  notes  remitted  him 
for  redemption  October  2;  also  $3840  new  bank  notes  to  replace  those  destroyed  October  2  (page  50). 

Forwarded  to  Treasurer  U.  S.  for  redemption  $10000  notes  of  other  National  banks. 
_  Received  $2000  notes  of  this  bank  redeemed  by  Treasurer  U.  S.     Deposited  same  amount  with  Assistant 
Treasurer  in  U.  S.  notes. 

Amount  charged  off  for  taxes,  $3360. 

[It  is  customary  among  banks  to  distribute  the  annual  amount  paid  for  State  and  City  taxes  among  the  several  months 
of  the  year.  Supposing  that  the  tax  rate  should  be  fixed  at  114  and  that  the  assessed  value  of  the  stock  were  200.  the 
tax  then  upon  each  share  of  stock  would  be  $2.28.  Multiplying  by  12000  (the  number  of  shares  comprising  the  capital 
stcx:k),  and  we  liave  a  total  of  $27300  to  be  paid  let  us  say  on  November  i.  The  jjencral  ledger  shows  that  a  total  of  $24000 
has  already  t)een  piid,  or  $24ix>  each  month,  leaving  a  difTerencc  to  be  paid  at  this  date  of  $33(10.  DifTerent  plans  may  be 
pursued  in  making  credits  for  the  several  monthly  payments.  Some  open  a  Contingent  account,  others  issue  certificates  of 
deposit  for  the  several  sums,  etc.     In  this  instance,  the  payment  being  the  final  one,  a  cashier's  check  will  be  issued.] 

IOO«     Third  Period* — December  i — The  loan  clerk  reports  demand  loans  made  as  follows  :  ^1273. 

J.  S.  Baclie  &  Co..  $120000 51274,   Ladenburg,  Thalmann   &  Co.,   $64300 51275.  C.  C.  Edey  &  Son. 

$80000 51276.  J.  W.  Davis  &  Co.,  $140000 51277,  Rogers  &  Gould,  $19575. 

Time  Loans:  5 '278.  proceeds  credited  to  Otis  Brothers  &  Co.,  $60000;    interest  60  days,  $ ;  total, 

$ 5'279.  proceeds  credited  to  Chas.  H.  Baker,  $12600;    interest  38  days,  $ ;  total,  f  

51280,  proceeds  credited  to  G.  W.  Adams,  $17000;  interest  44  days,  $ ;  total,  f  .  .  .51281,  proceeds 


credited  to  J.  H.  Newman.  $20000;    interest  30  days,  $ ;   total,  $- 

Blake  Bros.,  $75000;  interest  30  days  at  4  per  cent.,  $  ;  total,  $ 


5  1282,  by  cashier's  check  to 


Bills  discounted  debited  as  per  discount  register.  .  .  .Exchange,  Discount. Dealers,  credited  as  per  discount 
register  for  this  day. 

The  following  loans  were  paid  to-day  :  Demand— jf  1265,  W.  C.  Sheldon  &  Co..  $45000;  interest,  $225 

5  1268,  Dly  &  Heaton.  $75000;    interest,  $375 51 190,  Speyer  &  Co.,  $400000;    interest.  $2738.76 51 160, 

Kountze  Bros.,  $750000;  interest,  $3924.50 Total  interest  credited Time — 5  1262,  Gilbert  Manufacturing 

Co.,  $5050 5  1269,  Redmond,  Kerr  &  Co..  $40200 5  1272.  Strong.  Sturgis  &  Co.,  $95475. 

Bills  discounted  due  in  this  city  to-day  as  per  city  discount  tickler  have  been  paid  in  cash. 

Debit  Atlanta  National  for  draft  on  general  account,  their  collection  account  having  been  previously 
credited  for  same.  $1247.65. 

Letters  advising  payment  of  time  collections  were  received  from  the  following  correspondents,  from  which 
the  proper  debits  and  credits  are  to  be  made,  less  exchange,  and  the  particulars  extended  in  full  in  the 
collection  and  remittance  registers,  collection  and  discount  ticklers: 

National    Bank  of   Redemption,  Boston,  Collection  539,  Discount  5  1 5164  less  i,  10  per  cent   ...First 

National.  Chicago.  Collection  Nos.  8.  30,  45,  no  charges. . .  .Boatmen's,  .St.  Louis,  Discount  5  15188  less  i,  20 

Bank  of  California,  San  Francisco.  Collection  Nos.  2.  7  less  i   10 Commercial  Bank.  Syracuse.  Collection 

Nos.  35.  56,  61.  Discount  5  •5'6i  less  i   20 Industrial  Trust  Co.,  Providence,  Collection   Nos.  38,  53,  59  less 

I/12 Denver  National,  Collection  527  less  l  20 Second   National.  Toledo,  Collection  564  less  i/io   ... 

Atlanta  National.  Collection  541  less  18 Bank  of  Kentucky,  Louisville,  Collection  5  67  less  18 Galveston 

National,  Discount  515168  less  14 Fidelity  Trust  Co..  Discount  515179  less  i/io Tacoma  National, 

Discount  515180  less  i,  10 Detroit   National.  Discount  5  15185  less  i   15 Debit  Exchange  for  charges  on 

Discount  Nos.  15161,  15164.  15168.  15179,  15180,  15185,  15188  as  above. 

Checks  certified  this  day  as  per  certification-book,  A-L,  $ ;  M-Z,  f 

Boatmen's  Bank,  St.  Louis,  telegraphs  us  to  transfer  $35000  to  Hanover  National,  City,  for  credit  of 
Tootle,  Lemon  &  Co.,  St.  Joseph,  Mo.  (cashier's  check"). 

Paid  expenses  as  follows:    Stationery.  Homer  Lee  Bank  Note  Co.,   $235.48 Telegrams,  $13.25.... 

Directors'  fees,  $45 November  salaries,  $3678.50 Expressage  on  $10000  U.  S.  notes  from  Treasurer 

U.S..  $1.50. 

Sold  $300000  Klondike  Improvement  Bonds  at  165  and  commission  at  1/8  per  cent. 

The  following  items  due  in  this  city  to-day  as  per  collection  tickler  have  been  paid  and  credited,  less 
exchange,  as  specified:   National  Bank  of  Redemption.  Nos.  15  and  51.  exchange  1/20 First  National, 

65 


^la.ii 


!' 


BANK    BOOK-KEEPING 

Chicago,  Nos.  i8.  54,  and  88.  ft  18  charged  to  E.  R.  Durkee  &  Co Bank  of  California.  Nos.  21,  57.  89.  and 

90.  exchange  i/i2. . .  .Boatmen's,  St.  Louis,  Nos.  62  and  92,  exchange  I/8. . .  .Detroit  National,  #69.  exchange 

l/io Hibernia  National,  Jf  104,  exchange  1,8 Total  exchange  credited. 

Industrial  Trust  Co.  return  unpaid  check  remitted  to  us  for  credit  by  National  Bank  of  Commerce,  Kansas 
City,  $1200...  We  return  check  remitted  to  us  by  National  Lafayette.  Cincinnati,  payment  refused  by 
Querrara  &  Somborn,  $312.50. 

Cashier's  checks  issued  to-day:  ^7637,  Goldman.  Sachs  &  Co..  $78629.03. . .  .87638.  Dix  &  Phyfe.  $3151.40 
....87639.  Denscomb  &  Jennison,  $6439.64 ....  ft  7640.  Blake  Bros.,  $75000. ..  87641,  Hanover  National. 
$3  5000...  ft  7642,  Homer  Lee  Bank  Note  Co.,  $235.48. 

Certificates  of  deposit  issued  to-day  :  Hamilton  W.  Mabie,  $2450. . .  .Bradford  Rhodes.  $20000.  ...CM. 
Depew,  $14750.     .Frank  Thompson.  $9000. . .  .John  A.  McCall,  $35000. . .  .Geo.  W.  Bidwell.'  $3000. 

Customs  checks  issued  to-day  to  be  charged  to  dealers:  ft4oo,  Gilbert  Manufacturing  Co.,  $4758.12. . . 
ft4oi,  Bulkley,  Dunton  &  Co..  $3118.50. . .  .ft402.  Lord  &  Taylor.  $9768.45. . .  .8403,  Denny.  Poor  &  Co.,  $34.75 
. . .  .8404.  H.  Maillard.  $123.98. . .  8405.  Andrew  McLean  &  Co..  $367.28. 

The  following  checks  and  certificates  were  paid  by  the  first  teller  or  received  from  the  clearing-house: 

Cashier's  Checks— t^ifM,  C.  E.  Sprague,  $4127.58. ..  .8  759'.  t)-  O-  Underhiii.  $800. ..  .ft  7597,  Allen 
Durand,  $11.27. .  ft 7601,  Harvey  Fisk  &  Sons,  $50000. . .  .ft 7606.  U.  C.  Varick,  $3135.58  . .  .87608.  Columbia 
National,  $7500. ..  87615,  H.  K.  Nevius.  $125. ..  .57619,  Charles  Mann,  $45. ..  .87620,  S.  Mountain.  $75 ... . 
ft762i,  Holbrook  &  Co..  $16069.01 ...  .ft7622.  liUike  Bros:.  $49359-72  ••  .87623.  F.  VVallen.  $17412.50. ..  .ft 7624. 
Kissam.  Whitney  &  Co..  $47161.05.. .  .ft 7625,  W.  C.  Sheldon  &  Co..  $45000  . .  .ft 7626,  A.  M.  Kidder  &  Co.'. 
$21871.60  .57627,  Dominick  &  Dickermann.  $38900. ..  .ft 7628,  Day  &  Hcaion,  $75000. ..  .ft 7629,  Strong. 
Sturgis  &  Co.,  $95000. 

Certificates  of  Deposit— Q.  H.  Parkhurst.  $3000...  R.  S.  Hayes,  $5000....  F.  Cromwell,  $278.50 
F.  P.  Olcott,  $2587.84. .  .  Mrs.  Theodore  Sutro,  $400. . .  .Thomas  Hunter,  $200. . .  .Walter  L  Hervev  $700 
Baul  &Co.,  $1359.13.  '  ■■■■ 

Customs  Checks-tiZ'i,  $192.87. ..  .ft  389,  $1200. .  ..ft  390.  $3160. ..  .ft  391.  $5843. ..  .ft  392,  $49082 
ft  393.  $4462.80. ...  8  394.  $43362 ....  8  395.  $378.43 ...  8  396.  $18. 16 ....  8  397.  $4471-35 ....  8  398.  $2000 
ft  399.  5875.43- 

Certified  Checks— (To  be  entered  also  in  the  certification-book)— Morton.  Bliss  &  Co..  $2471.87,  $380  06 
Knickerbocker  Trust  Co..  $372.75.  $12.73.  $36950.  $44760.29.   .  .J.  H.  Newman,  $44.90. . .  .G.  G.  Haven.  $7000 
. . .  .United  States  Leather  Co.,  $1950.  $45475.  $17840.26. . .  .Gilbert  Manufacturing  Co..  $471.95        Redmond 
Kerr  &  Co..  $3«74.28,  $25278.45. . .  .Cooper.  Hewitt  &  Co..  $22600,  $61.25,  $4978.25. . .  .Bulkley.  Dunton  &  Co.." 
$72800. . .  .John  L.  Riker,  $11500. 

The  following  correspondents  should  I>e  credited  for  interest  on  their  average  monthly  balances,  rate 
3  per  cent,  per  annum  (accurate): 

National  Bank  of  Redemption,  $392688.13. .  ..City  National.  Dallas.  $43498.37 ....  Columbia  National. 
Washington,  $158801.02 National  Commercial.  Albany,  $21289.23. 

Forwarded  to  Treasurer  U,  S.  for  redemption  $15145  notes  of  other  National  banks. 

Received  $10000  coin  certificates  in  exchange  for  National  bank  notes  remitted  for  redemption  November  I. 

lOX.     Fourth  Fetiod,— December  j/— The  loan  clerk  reports  demand  loans  made  as  follows :  ft  1283. 
Heiddbach,  Ickelheimer  &  Co..  $500000. ..  .81284.  J.  &  W.  Seligman  &  Co.,  $60000. ..  8  "285.  Winslow 
Lanier  &  Co..  $15000. . .  .81286,  Hatch  &  Foote,  $34360. . .  81287.  Brown  Brothers  &  Co.,  $50000'        81^88' 
August  Belmont  &  Co..  $100000. .     81289,  Chrystie  &  Janney,  $75000. . .  81290,  H.  B.  Hollins  &  Co..  $25000 
. . .  .81291,  Kuhn,  Loeb  &  Co..  $12000. . .  .81292.  Henry  Clews  &  Co..  $1385000. 

Time  Loans:    81293.  proceeds  credited  to  Steinway  &  Sons,  $25000;   interest  15  days,  f  ;   total. 

$ 8  »294,  proceeds  credited  to  Morton,  Bliss  &  Co..  $30000;  interest  7  days.  $ ;  total.  $ !_ 

81295,  proceeds  credited  to  Denny.  Poor  &  Co..  $12000;   interest  19  days,  $ ;   total,' $ 81296 

proceeds  credited  to  Lord  &  Taylor.  $17300;    interest  28  days.  $ ;   total.  $ .8  "297.  by  cashier's 

check  to  Acker.  Merrall  &  Condit.  $30000;  interest  30 days.  $ ;  total.  $ 8  '298,  by  cashier's  check 


to  Arnold,  Constable  &  Co.,  $11900;    interest  45  days,  $1 
B.  Altman  &  Co.,  $19800;  interest  35  days,  $ ;  total, 


total. 


.81299.  by  cashier's  check  to 


.Exchange.  Discount, Dealers,  credited  as  per  discount 


Bills  discounted  debited  as  per  discount  register, 
register  for  this  day. 

The  following  loans  were  paid  to-day:  Demand— i^  1266,  A.  M.  Kidder  &  Co..  $21871.60  and  60  days' 
mterest. .  .81267.  Dominick  &  Dickermann.  $38900  and  60 days'  interest. . .  .^1273,  J-  S.  Bache  &  Co.  $120000 
and  30  days'  interest. .  8 1276.  J.  W.  Davis  &  Co..  $.40000  and  30  clays'  interest. . .  .8  1 198,  Simon  Borg  &  Co.. 
$49«85o  and  98  days'  interest  at  2>i  per  cent 8  >  "63.  Maitland,  Coppell  &  Co..  $74Sooo  and  123  days'  interest 

66 


THE    GENERAL    BOOK-KEEPER 

at  3  per  cent 8  "78,  Corbin  Banking  Co.,  $98543.58  and  103  days'  interest  at  3}4  per  cent Time—I^  1263, 

Re<lniond,  Kerr  &  Co.,  $16739.67 8  '270.  Lord  &  Taylor,  $25250 8  '282,  Blake  Bros.  &  Co..  $75250 

8  1281,  J.  H.  Newman.  $20100. 

Bills  discounted  due  in  this  city  to-day  as  per  discount  tickler  have  been  paid. 

Letters  advising  payment  of  time  collections  were  received  from  the  following  correspondents,  from  which 
the  proper  debits  and  credits  are  to  be  made,  less  exchange,  and  full  explanation  extended  in  the  collection  and 
remittance  registers,  discount  and  collection  ticklers  : 

National  Bank  of  Redemption,  Boston,  Collection   Nos.  60,  63,  76,  81,  102  less  1,10 First   National. 

Chicago.  Collection  Nos.  43,  66.  73,  96,  98 Boatmen's,  St.  Louis,  Collection  Nos.  3.  12.  47.  49.  71,  75,  80 

less  1/20....  Bank   of  California,  San    Francisco,  Collection    Nos.  42.  46.  72,  78  less -i/io. ..  .Commercial. 

Syracuse,  Collection   Nos.  68,    100,   Discount  Nos.  15176,    15202  less  1,20 National   Bank  of  Commerce, 

Kansas  City,  Collection  Nos.  79,  99  less  l,  12. . .  .Hibernia  National,  New  Orleans,  Collection   Nos.  28,  85  less 

1/20 Industrial  Trust  Co.,  Providence,  Collection   Nos.  91.  93  less  1/10 Denver  National.  Collection 

Nos.  65,  94,  Discount  815197  less  1/20 Atlanta  National,  Collection  Nos.  6.  40,  74,  Discount  Nos.  15167, 

15192  less  18...  .Bank  of  Kentucky,  Louisville,  Collection  Nos.  31,  97,  Discount  ft  JS'gg  It-'ss  18...  .Galveston 
National,  Discount  8' 5 '73  less  I  4-  •  •  .FidelityTrust  Co.,  Omaha,  Discount  815198  less  i   10. .  .  .Detroit  National, 

Discount  8  15205  less  i   10 St.  Paul  Trust  Co.,  Collection  848  less  i/20 Columbia  National,  Washington, 

Discount  8'5'8l  less  l  8 Iron  City  National,  Pittsburg.  Discount  ft  15187  less  1,-20 Debit  Exchange  for 

charges  on  Discount  Nos.  15176,  15202,  15177,  15167,  15192,  15199,  15173,  15198,  15205,  15181,  15187  as  above. 

Checks  certified  this  day  as  per  certification-book.  A-L,  $ ;  M-Z,  $ 

Paid  expenses  as  follows:    Stationery,  $17.65 Telegrams,  $6.25 Expressage  on  certificates  from 

Treasurer  U.  S.,  $2.25 Directors'  fees,  $45. 

Bought  of  Speyer  &  Co.,  per  cashier's  check,  $200000  City  of  New  York  314's  at  \c&%. 

The  following  items  due  in  this  city  to-day  as  per  collection  tickler  have  been  paid  and  credited  less 

exchange,  as  specified:    National  Bank  of  Redemption,  Nos.  52,  83,  115,  and  116,  exchange  i/io First 

National,  Chicago,   Nos.   55,  87,   118,  and    119 Bank  of  California,  ft  58,  exchange    i   12 Boatmen's, 

St.  Louis.  Nos.  24,  123,  124,  and  125,  exchange  1/8.  . .  .Detroit  National,  8  101,  exchange  i,  10 Denny,  Poor 

&  Co.,  8  '09. . . .  New  York  Rubber  Co.,  8  1 10. . .  .  Total  exchange  credited. 

Cashier's  checks  issued  to-day  (amounts  to  be  supplied  from  the  original  transactions  of  this  date):  87643, 

Hathaway  &  Co.,  proceeds  of  Discount  815208 87644,  Discount  815211 87645,  Discount  ft  152 17 

57646,  Time  Loan  ft  1297 ft7647.  Time  Loan  ft  1298 ft  7648,  Time  Loan,  81299 87649  to  Speyer  &  Co. 

for  City  of  New  York  3J4*s ft  7650,  Henry  Clews  &  Co.,  Demand  Loan,  8  '292. 

Certificates  of  De|)osit    issued    to-day:   Joseph  Choate,   $14000.  ...  H.  W.  Cannon,   $60000 Cornelius 

Vanderbilt,  $270000 Augustus  Si.  Gaudens,  $18250 J.  Q.  A.  Ward,  $9000 Will  H.  Low,  $5000 

W.  F.  Kline,  $800 Alice  Barber  Stephens,  $750 Mrs.  Charles  Scribner,  $30000. 

Customs  checks  issued  to-day,  to  be  charged  to  dealers:  84o6,  Bulkley,  Dunton  &  Co.,  $8391.84 8407, 

Denny,  Poor  &  Co.,  $3195.40 8408,  H.  Maillard,  $8125.75. 

The  following  checks  and  certificates  were  paiil  by  the  first  teller  or  received  from  the  clearing-house: 

Cashier's   Checks— ^763$,  C.  F.  Christian,  $200...   ^7637,  Goldman,  Sachs  &  Co..  $78629.03.    ..87638, 

Dix  &  Phyfe,  $3151.40 87639.  Denscomb  &  Jennison,  $6439.64  ...87640,   Blake  Bros.,  $75000. . .  87641, 

Hanover  National,  $35000  . .  .87642,  Homer  Lee  Bank  Note  Co..  $235.48. . .  87636,  David  E.  Austin,  $3360. 

Certificates  0/ Deposit— W.   H.  Goodyear,  $1500 Hamilton  W.    Mabie,  $2450 Bradford  Rhodes, 

$20000 C.  M.  Depew,  $14750.  . .  .Frank  Thompson,  $9000. 

Customs  Checks— ^4.00,  $4758.12. ..  .8401,  $31 18.50. ..  8402,  $9768.45 .... 8 403.  $34-75  •••  •?404.  $123.98 
....8405,  $367.28. 

Certified  Checks — (To  be  entered  also  in  the  certification-book) — United  Slates  Leather  Co.,  $7360.21. 

$71950.  $5792.18 Knickerbocker  Trust  Co.,  $967.82.  $8500,  $16925.40,  $19633  67   . .   Chas.  H.  Baker.  $425.92 

....Redmond,   Kerr  &  Co.,  $37.28,    $460.45 John   L.  Riker,  $400 Cooper,  Hewitt  &  Co.,  $376.98 

Union   Manufacturing  Co.,  $37.98.  $4875,  $5000 A.  Iselin,  Jr.,  $2574.68,  $1600 Western  Electric  Co.. 

$45000 W.  F.  Wakeman,  $1238.75. 

Received  from  Treasurer  U.  S.  $15145  in  coin  certificates  in  exchange  for  National  bank  notes  remitted 
for  redemption  December  i. 

After  posting  and  preparing  Statement,  the  student  will  close  the  following  accounts  into  Profit  and  Loss 
account:  Expense,  Taxes,  Interest  to  Correspondents,  Discount,  Interest.  Exchange,  Commission,  and  Profit 
on  Bonds.     The  Profit  and  Loss  account  will  then  be  closed  as  follows:   To  Dividend,  4  per  cent,  of  Capital 

Stock;   to  Surplus,  $100000;   and  the  balance  (Undivided  Profits)  brought   down Dividends  are  paid  by 

cashier's  checks,  and  Dividend  account  is  debited  when  the  checks  are  issued.     The  student  may  omit  the 
dividend  checks,  as  no  list  of  stockholders  is  given. 

67 


Ill 


CHAPTER    VIII. 

SUBSIDIARY   SUBJECTS. 

L— THE  CLEARING  HOUSE. 

loa.  The  Clearing:  House  .s  a  place  where  the  daily  exchanges  between  several  associated 
banks  are  etfectcd,  ami  where  the  payments  of  the  balances  resulting  from  such  exchanges  are 
made.  Before  clearing-houses  were  established,  it  was  necessary  for  each  bank  in  a  city  to  keep 
an  account  w.th  every  other  bank  in  that  city.  These  accounts  were  made  up  every  morning  and 
messengers  sent  to  the  debtor  banks  to  present  accounts  and  receive  balances,  which  were  uJually 
adjusted  m  gold.  This  finally  became  so  laborious  that  the  messengers  sought  to  shorten  the 
process  by  meeting  at  some  specified  point  to  exchange  their  checks  and  drafts,  and  adjust  the 
resulting  d.tferences.  The  present  perfection  of  the  clearing-house  system  is  the  outgrowth  of 
these  early  attempts  of  the  messengers  to  simplify  a  laborious  routine. 

103.    The  New  York  Qearing  House  Association    is  an  organization   composed   of  46 
national  and  19  State  banks,  and  the  Assistant  Treasurer  of  the   United  States  at  New  York       It 
was  organized  in  1853,  and  had  for  its  objects  the  mutual  convenience  and  protection  of  its  mem- 
bers, chief  among  which  was  the  advantage  of  settling  at  one  place  and  at  a  certain  time  of  the  day 
the  transactions  that  arose  between  the  several  banks  forming  the  association. 

The  association  is  governed  by  a  Constitution  which  may  be  amended  by  the  vote  of  a  majority 
of  all  the  members.  The  general  supervision  of  its  affairs  is  vested  in  a  Clearing  House  Committee 
of  five  bank  officers,  who  appoint  a  Manager  and  his  assistants,  and  establish  such  rules  and  regula- 
tions as  are  not  provided  for  in  the  Constitution. 

The  association  is  in  no  wise  responsible  in  regard  to  the  exchanges,  nor  in  regard  to  the 
balances  resulting  therefrom,  except  in  so  far  as  such  balances  are  actually  paid  into  the  hands  of 
the  manager.  The  responsibility  of  the  association  is  strictly  limited  to  the  faithful  distribution  by 
the  manager  among  the  creditor  banks,  for  the  time  being,  of  the  sums  actually  received  by  him 

Every  bank,  which   is  a  member  of  the  Clearing  House  Association,  must  furnish  a  weekly 
statement  to  the  manager,  for  publication,  showing  its  average  amount  of  Loans  and  Discounts 
Specie,  Legal  Tender  Notes,  Circulation,  and  Deposits. 

At  the  time  of  admission  each  member  of  the  Clearing  House  Association  is  given  a  number 
which  number  is  permanently  dropped   should   the  member,  for  any  reason,  withdraw  from  the 
association. 

In  addition  to  the  direct  members,  77  banks,  trust  com|)anies,  etc.,  make  their  clearings  at  the 
New  York  Clearing  House  through  the  agency  of  other  banks  which  are  members.  Non-member 
banks  are  required  to  prepare  a  weekly  statement  for  delivery  at  the  clearing-house,  covering  the 
following  facts  :  (1)  average  daily  amount  of  loans,  discounts  and  investments;  (2)  amount  of 
specie  on  hand  ;  (3)  average  amount  of  legal-tender  notes,  and  bank  notes  on  hand  ;  (4)  average 
amount  on  deposit  with  other  New  York  banks  and  trust  comjianies  ;  (5)  average  amount  of 
deposits;    (6)  average  amount  of  circulation. 

104.  Preparation  of  Exchanges  for  Delivery.— As  was  indicated  in  Chapter  11.  (26), 
all  checks,  drafts,  n..tes,  ..rders,  etc.,  which  can  be  collected  through  the  clearing-house,  art- 
handed  to  the  settling  clerk  to  be  listed.  The  work  of  assorting  the  items  for  delivery  at  the 
clearing-house  is  facilitated  by  the  use  of  a  case  of  compartments,  or  pigeon-holes,  technically 
known  as  the  "  rack."  This  case  contains  a  compartment  for  each  member  of  the  clearing-house, 
each  compartment  being  designated  by  the  clearing-house  numlier  of  that  member.  The  items 
are  first  stamped  with  the  receipted  endorsement  retjuircd  by  the  clearing-house  (68),  and  next 
distributed  in  the  different  compartments  of  the  rack. 

68 


SUBSIDL\RY    SUBJECTS 


No.  61. 

FOURTH  NATIONAL  BANK 

From  No.  90. 

National  union  Bank. 

( I )ate) 


At  the  close  of  the  day,  or  at  intervals  during 
the  day,  the  items  are  taken  from  each  compart- 
ment and  the  amounts  listed  upon  an  envelope, 
across  the  end  of  which  is  printed  the  number  and 
name  of  the  bank  against  which  the  items  are  drawn, 
followed  by  the  name  and  numl)er  of  the  bank  which 
sends  the  items  to  the  clearing-house.  A  duplicate 
list  or  sheet  is  afterwards  made  by  an  assistant  who 
proves  the  footing  of  each  column  by  comparison, 
as  listed,  this  latter  sheet  being  preserved  by  the 
l>ank  for  reference.  The  items  are  then  placed  with- 
in each  envelojK;  until  the  following  morning,  when 
such  items  are  added  —  known  as  the  "  morning 
addition" — as  are  received  by  mail  or  among  the 
dejK)sits  before  ten  o'clock. 

I05«  The  Settling:  Clerk's  Statement  contains 
a  printed  list  of  the  names  and  numbers  of  the 
members  of  the  clearing-house,  with  columns  for 
the  respective  debit  and  credit  amounts.  When  the 
final  footing  of  each  envelope  has  l)een  obtained,  the 
numbers  and  amounts  are  usually  called  off  from  the 
enveloi>es  by  an  assistant,  while  the  settling  clerk 
enters  each  amount  in  the  left-hand  column  of  his 
statement,    opi>osite    the    name   of   the   bank   corresp'onding   to    the    number   on    the   enveloj)e. 

No.  90.  NATIONAL    UNION    BANK. 

DELIVERY  CLERK'S   STATEMENT.  (Date) 


FORM    <»1     (  .    H.   ENVELOPE. 


N.. 

Bank*. 

Amount  Dr. 

Signature. 

I 

Hank  of  -N.  V.  Natl.  IJkjj.  Assn. 

135 

408 

00 

2 

M:inhatt.-in  Comjxtny 

73 

821 

97 

3 

Merchants'  National  Uank 

2 

446 

82 

4 

Mechanics'  National  liank 

27 

96S 

33 

6 

ISank  of  America 

65 

386 

41 

7 

I'henix  National  liank 

5 

835 

06 

8 

National  City  Hank 

282 

301 

90 

•             •             *            •            •            «            *    ' 

« 

* 

• 

Another  clerk  prepares  at  the  same  time  the  delivery 
clerk's  statement,  or  receipt  list,  which  is  a  copy  of  the 
settling  clerk's  statement  with  the  credit  column  omitted, 
followed  by  an  added  column  for  the  signatures  of  the 
settling  clerks  at  the  clearing-house.  A  third  assistant 
copies  the  amounts  ujwn  small  tickets,  each  ticket  also 
bearing  the  name  and  nnml>er  of  both  the  sending  and 
receiving  banks.  These  tickets  are  taken  by  the  delivery 
clerk  to  the  clearing-house  and  left  at  the  appropriate 
desks  of  the  settling  clerks  to  enable  them  to  check  off  the 
amounts  received  from  other  banks,  in  case  of  a  difference. 


No.  8. 

NATIONAL  CITY   BANK. 

From  No.  90, 

National  Union  Bank 


%2<f^jJcjL 


FORM  OF  C.  H,   TICKET. 


BANK    BOOK-KEEPING 


If  the  listing  is  done  upon  slips  instead  of 
envelopes,  the  slips  are  attached  to  the  outside 
of  the  envelopes.  The  envelopes  are  next 
placed  in  a  valise  and  arranged  in  the  nu- 
merical order  of  delivery  at  the  clearing-house. 

Non-meml>er  banks  prepare  their  ex- 
changes in  the  same  manner  as  direct 
members,  the  several  envelojjes  being  deliv- 
ered to  the  respective  clearing-house  agents 
sufficiently  early  in  the  morning  for  the  total 
of  each  envelope  or  package  to  be  adtled  to 
the  endosing  envelope  of  the  clearing  bank 
and  included  in  the  settling  clerk's  statement. 

lo6.  The  Daily  Routine— Each  bank 
sends  to  the  clearing-house  a  delivery  clerk 
and  a  settling  clerk.  As  he  enters  the  clearing- 
house, each  settling  clerk  leaves  at  the  desk 
of  the  manager  a  "credit  ticket"  showing  the 
total  amount  of  exchanges  which  he  has 
brought  against  the  other  banks.  The  amount 
of  this  ticket  is  entered  by  a  clerk  on  the 
Clearing  House  Proof,  under  head  of  "  Banks 
Cr."  The  aggregate  of  the  several  tickets 
represents  the  total  sum  sent  in  by  the  several 
banks,  and  is  called  the  Credit  Exchange. 

The  desks  at  the  ckaring-house  are  ar- 
ranged in  four  longitudinal  rows,  one  desk 
being  prt)vided  for  each  member.  A  few  min- 
utes before  ten  o'clock  the  settling  clerks  are 
found  at  the  desks  of  their  respective  banks, 
opposite  their  corresponding  delivery  clerk, 
each  of  whom  has  brought  his  respective  case 
of  envelopes  from  the  bank  which  he  repre- 
sents. Each  settling  clerk  has  before  him  his 
statement  the  debit  column  of  which  shows  the 
amount  of  checks,  etc.,  his  bank  has  against 
each  of  the  other  banks.  On  the  credit  side 
of  this  statement,  which  is  now  blank,  will  be 
entered  the  amounts  received  from  the  other 
banks. 

At  precisely  ten  o'clock  a  gong  rings,  and 
the  line  of  march  begins.  Each  delivery  clerk 
advances  one  desk  at  a  time  and  delivers  to 
the  settling  clerk  the  proper  envelope  of  checks 
with  its  aggregate  of  contents  attached,  and 
drops  at  the  same  time  the  corresjwnding 
ticket  through  a  slot  in  the  desk.  The  set- 
tling clerk  compares  the  amount  on  the 
envelope  with  the  amount  on  the  delivery 
clerk's  statement,  and,  if  correct,  signs  his 
initials  opposite  the  amount  and  returns  the 


lO.NATTONAL  UNION  BANK 


SUBSIDIARY    SUBJECTS 


No.  90. 


New  York  Clearing  House. 


_ ^(Pf 


Credit  National  Union  Bank,  %  A^^r^ 


7S- 


SetUing  Clerk. 


FORM    OF    CREDIT    TICKET. 

receipted  statement  to  the  delivery  clerk.  He  then  enters  the  amount  on  his  own  statement 
in  the  credit  column  op|>osite  the  name  of  the  proper  bank.  The  delivery  clerk  advances  to 
the  next  desk,  where  the  same  operation  is  repeated,  and  this  is  continued  until  he  has  passed 
the  other  sixty-five  desks  and  again  stands  before  the  desk  of  his  own  bank.  The  circuit  of 
the  desks  is  completed  in  about  eight  minutes.  The  sheet  of  each  delivery  clerk  has  appended 
to  it  the  signatures  of  the  sixty-five  settling  clerks,  which  serves  as  his  voucher  to  his  bank 
that  he  has  delivered  all  the  enveloi)es  entrusted  to  him.  The  settling  clerk  has  now  on  his 
desk  the  packages  received  from  each  of  the  other  banks,  which  the  delivery  clerk  gathers 
u|>  and  returns  to  his  bank.  He  also  takes  with  him  a  memorandum  of  the  approximate 
balance  in  favor  of  his  bank  or  against  it. 


s:    !  I  No.  90. 


9np  f  01k  ^titriimi  §mr. 


.189 


M\\  National  Union  Bank,  Am't  rec'd.  s  Z.>C_3^^^f,  ^ 

creiit      "  "         "    brought.   $  ><Lv:;^.g,_^ 


'A" 


^^^ 


J>i!Mt  Bmimnee  Dum  Clearing  Hotue. 


Or.  *«!.  4«M  National  Union  Ban 


Satlim^  Clerk. 


ZZ^ 

FORM    OF    BALANCE    TICKET. 

The  settling  clerk  carefully  revises  the  addition  of  the  credit  column  of  his  statement,  after 
which  a  Balance  Ticket  is  prepared  and  sent  to  the  manager's  desk  showing  the  amount  brought, 
the  amount  received,  and  the  balance  owing  to  the  bank  or  payable  by  it.  The  amounts  received 
are  entered  on  the  Clearing  House  Proof  under  head  of  "  Banks  Dr.,"  and  the  balances  extended 
in  the  proper  column.  It  is  evident  that  the  footing  of  the  "  Banks  Dr."  column  should  equal  the 
footing  of  the  "Banks  Cr."  column,  and  also  that  the  debit  balances  should  equal  the  credit 
balances. 

Should  there  l>e  an  error  in  the  proof  the  announcement  is  made  by  the  manager  at  10:45  o"* 
earlier.  The  settling  clerks  have  been  revising  their  work  from  the  tickets  which  were  distributed 
by  the  delivery  clerks,  and  errors  of  transcription  can  thus  be  found  though  the  checks  have  been 

71 


BANK    BOOK-KEEPING 

NEW  YORK  CLEARING  HOUSE  PROOF.. 


K*. 


I 
1 

3 

4 
< 
7 

a 

10 
M 
13 
14 
IS 
1« 
17 
18 
1> 
M 
» 
U 

" 

tl 

ti 

M 

30 
31 
31 
S3 
S4 
S« 
40 

a 

41 
47 
4* 

n 

M 

» 
n 
•s 

<4 

ts 

•7 
70 
71 
7« 
74 
7S 
7. 


■AMU. 


Bnk  of  N.  T.  Hatt  Bk'g  AMc-a. 
Bnk  of  Um  Muihkttu  CoB|Hiy, 
HochaalB'  NatioiiBl  Buk. 
KcdiaBios'  NatuMMl  Buk. 
■■Bk  o(  Ameitei, 
FlMsii  Nstiooatl  Bank, 
Mational  City  Buk, 
Tndamen't  National  Baak, 
ChMBical  Natioaal  Bank. 
Meraianli'  Bieluutga  Natl  Baak, 
Oallatia  Natioaal  Bank, 
Natl  Batcinn'  A  Diotms'  BwA, 
If  •chauoif'  &  Tndoa'  Baak, 
Omnvieh  Bank, 
UaikMr  Hanorn  Natl  Bank, 
SeraoUi  National  Bank, 
Baak  oC  th*  State  of  New  York, 
Amoncan  Ctclianga  Nat'l  Ehnk 
National  Bauk  of  ConaaiM 
Natiaaal  Broadway  Bank, 
Mercantile  National  Bank, 
hoifleltanc. 

National  Buk  of  the  Repablie, 
Chatham  National  Hue, 
Ttafl»'t  Bank, 

National  Buk  of  North  AiMriea, 

HanoTor  Mati«n»l  Bank, 

Irrinit  Natioaal  Bank, 

National  CiliMMT  Buk, 

NiMnBank, 

Ifarkot  ft  Kottoa  National  Bkak, 

National  Shoo  ft  Leather  Buk, 

Cms  Bnhaaca  Buk, 

CutiBMlal  Natioul  BMk, 

OrirataiBuk, 

iBoerian'  ft  Tiatfan*  Natn  Buk, 

MUioMl  Pferk  Buk, 

Bat  Bitror  National  Bank, 

ronrth  National  Buk, 

CoMnl  National  Bank, 

Saaoad  NatioMl  Bank, 

Ninth  Watienal  Bank, 

Tint  Hatioul  Buk, 

N.  T.  Natioul  Bnhaa«e  Bkak, 


N.  T.  Comity  Natiaul  Bbak. 
Oonnaa-ABMrioaa  Bank, 
Gkaae  Natioaal  Bkak, 
AneH  Tnaunr  U.  &  at  W.  T. 
VUlh  Afaoe  liaak. 


_189 


on  CLEARING  HOUSE. 


^. 


fVif£ 


U 


''>*- 


/L3 


J^'. 


s-j/i/ 


■AKKS. 


u 


mC 


u 


>i'i'  Ls-g 


r 


//■/ 


5V^ 


/ 


/f3 


f¥J 


77 


ys  yro 


/r 


7¥> 
3 1  o  j^x 


S  ft 


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'n 


>u 


"I 


e>> 


7 


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i^ 


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/o 


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6" 
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0 


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■AMU. 


J  fC^/fS  i. 


/. 


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ro 

7 


7 


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3  oSt 


J. 


"i-i/n  VC  / 


r/>yb 


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7 


fit  s,4  f/ 

7ys3CCsJ  f 

H^i  y.Js-C 
/  tas-  r/^  -i^ 

7a 


e^  ■ 


/J- 7/ 


cv 


yjy^ 


7^C   7y,  S't^ 

3i^3o  fly 


•3s 
fp4 


4r/J/3 


'77 


a3 
1^ 


xs- 


/  '^33  fj  i\f-f 

V/S¥f9yf 

^fs-^ry>yt 


?J* 


iff 


•  ^/  y\s-s-M^ 


>3 


mn  BANKS. 


i^J?. 


7'r^7 

VJrt 


r3 


f,. 


o. 


/ 


7 


'^ft,Sf 


^-/^i 


¥/f 


77 

^7 


i^s-i 


/-^ 


¥>(■ 


H' 


fV/ 


7' 


f^^. 


'o>yS-3fS-    44 


JSiS' 


f^f^oS: 


f 


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oUi 


7" 


so 
11 

*3 
SS 

S7 


30 
31 
31 
S3 
S4 
3S 
40 
4S 


jj-i 


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47 
4t 
•* 
S4 
St 
<1 

a 

•3 
•4 
M 

«7 
70 
71 
71 
74 
TS 

n 


SUBSIDIARY    SUBJECTS 


n 

7S 
7t 

10 

SI 
SI 
B3 

St 
St 

•s 
r 

SS 

so 
•1 

M 
M 


Oerau  Eichange  Bank. 

Oeraania  Baak, 

Cailad  Slatei  National  Bank. 


OaiAdi  Matiaaai  Baak. 
Fifth  Natioaal  Bank, 
Baak  of  the  MetrapoUa, 
Weet  Side  Bank, 
8aab«rd  National  Buk. 
Biitk  National  Bank, 
Woiteni  National  Bank, 
Firat  Natioaal  Baak,  BUyn, 
Natioaal  Uaion  Buk. 
LOiarty  Natioaal  Bank, 
N.  T.  Prodnea  g"-hii^  Bk^. 
Bkak  of  Mew  i 


73%-  Sfif 


f/r 

/^7 


/L 


3i.o 
/// 


>f3 


Si. 

\3! 

77 


ft  f  -J  t^  ^i^ 

f¥>fis¥j 


ys  /f 


L, 


71 

¥ff\ry>\3C 


7* 
7>i 


-^rn/[>^:u|T^ 


9oSys-yW 


\8U 


y;-  'f>.  ¥L^S'of-j>  /A- t/:ia  £^cf  y  > 


X,  n  \fytj 
^3S- 


A 


^^3 


/ 


n 


af 
¥f 


yyCSy 
¥p 

X7.       ^ 


/    "^7^ 
7\ii  i-rt  w^  >  -js~ 


71A.I1. 


/  o 
o 


7' 

7^ 


y\F3i 


^o^^i-o 


f 


y^- 


7)^¥3 


U 

n 


/^^fS 


rs\3 

»3 


^, 


7 


f 
ac 


4C 


I 


r3> 


77 

rs 

79 
80 
81 
81 
83 
£4 
83 
SS 
87 
88 
90 
»1 
93 
93 


>/i,'  M 


taken  away.  To  correct  errors  in  addition,  the  statements  are  passed  to  the  right  and  added  by 
another  clerk.  If  the  error  is  not  then  discovered,  clerk  of  Bank  No.  i  passes  down  the  line  with 
his  statement  and  calls  back  the  amount  he  has  received  from  each  bank.  Clerk  No.  77  inmiedi- 
ately  follows  NO.  1,  and  calls  off  his  amounts.  This  operation  sometimes  begins,  for  convenience, 
with  No.  20,  who  leads  off,  and  is  followed  by  No.  93.  Should  the  difference  still  remain  undis- 
covered, a  committee  is  apix)inted  com|x>sed  of  the  ten  settling  clerks  who  hold  the  best  records  in 
the  clearing-house.  They  revise  the  additions  of  all  the  statements,  and  this  must  correct  all  errf)rs. 
The  accompanying  Clearing  Mouse  Proof,  and  tlie  Settling  Clerk's  Statement,  tickets,  etc., 
are  photo-engraved  from  the  actual  forms  used  in  a  given  day's  transactions  at  the  New  York 
(bearing  House,  the  date  being  puriv)sely  omitted  in  all  of  the  documents.  The  two  unusually 
large  balances,  shf)wn  in  the  proof,  of  $•'^,537,811.77,  due  the  National  City  Bank,  and  of 
$7,125,801.67,  due  the  Clearing  House  by  the  Fourth  National  Bank,  were  consequent  to  a  pay- 
ment made  to  the  (iovernment,  on  account  of  the  re-organization  of  the  Union  Pacific  Railroad. 

1070  Debtor  and  Creditor  Banks. — If  the  aggregate  amount  of  checks  and  items  brought 
by  one  bank  against  all  other  banks  is  less  than  the  aggregate  of  checks  and  items  brought 
by  other  banks  against  it,  the  bank  is  said  to  be  "Debtor";  that  is,  that  it  owes  the  clearing- 
house, the  difference  or  debit  balance  of  such  aggregates.  But  if  the  checks  and  items  brought 
amount  to  more  than  the  aggregate  against  it,  the  bank  is  said  to  be  "Creditor,"  which  signifies 
that  it  is  entitled  to  receive  from   the  clearing-house  the  difference  of  such  aggregates. 


No.  90.       |[rip  f  0vb  (Skaritig  l^tmt, 

feretrrl/^  Me  NATIONAL  UNION  BANZ; 


J8g 


^0^^<-.^«.-x-<^>v_t_af 


<3:=::^.=*^t^._r/^ 


2 


DoUars  in  full  for  balance  due  the  Assoc 


ASSISTANT   MANAGER  S   RECEIPT. 
73 


BANK    BOOK-KEEPING 

Between  the  hours  of  12:30  and  1:30  o'clock  the  debtor  banks  must  pay  to  the  manager 
the  balances  against  them  either  in  actual  coin,  U.  S.  legal-tender  notes,  or  in  clearing-house 
certificates.  Receipts  are  signed  by  the  manager,  which  are  held  by  the  banks  making  the 
payments.  * 

After   1:30  o'clock,  or  as  soon  thereafter  as  the  amount  can  be  made  up  and  proved   the 
creditor  banks  may  receive  from  the  manager  the  respective  balances   due   to   them       Receipts 
for  the  amounts  taken  by  the  creditor  banks  are  made  by  signature  opposite  the  amount  received 
in  a  book  specially  prepared  for  the  purpose.  * 

108.  Adjustment  of  GUims.— All  checks,  drafts,  notes,  or  other  items  in  the  exchanges 
returned  as  "  not  good,"  or  mis-sent,  must  be  returned  the  same  day  directly  to  the  bank  from 
which  they  were  received,  and  the  said  bank  must  immediately  refund  an  equivalent  amount  in 
specie  or  legal-tender  notes;  usually,  however,  unless  the  item  is  of  large  amount,  or  the  reserve 
of  the  returning  bank  is  approaching  its  limit,  such  payments  are  made  by  cashier's  check  or 
tellers  ticket.  But  checks,  drafts,  notes,  or  other  items  to  be  returned  for  endorsement  or 
informality  may,  after  being  certified  by  the  bank  returning  them,  and  not  exceeding  $5000  in 
amount  to  any  one  bank,  be  returned  through  the  exchanges  the  following  morning. 

Checks   and   other  items   bearing  any  qualified  or  restrictive   endorsement  cannot  be  sent 
through  the  clearing-house  unless  all  endorsements  thereon  are  guaranteed  by  the  sending  bank. 

109.  Checks  from  Oearing:  House.— The  bundles  of  checks  brought  from  the  clearing-house 
are  perforated  with  an  awl,  the  number  and  arrangement  of  the  holes  indicating  the  bank  from 
which  the  checks  were  received.  This  is  done  to  ensure  identity  in  case  the  endorsement  of 
the  sending  bank  may  have  been  omitted;  or  the  examination  of  the  end.^rsements  may  be 
made  first,  and  the  perforations  omitted.  The  envelopes  are  next  opened  and  the  contents  of 
each  checked  against  the  accompanying  slip  or  envelope,  to  see  that  no  errors  or  omissions  have 
been  made.  1  he  checks  are  next  assorted  that  each  dealer's  checks  may  be  grouped  together 
after  which  they  are  written  in  the  debit  books.  The  checks  are  next  delivered  to  the  balance 
ledger-keeper,  who  enters  the  aggregate  to  each  dealer's  debit,  that  his  balance  may  be  known 
at   once.      I  he   signatures   of  the   checks,  drafts,  etc.,  are  next  examined  by   the  paying  teller 

I  he  debit  books  are  not  posted  to  the  dealers'  ledgers  until  a  proof  of  the  items  brought  from 
the  clearing-house  has  been  obtained.  This  proof  shows  the  different  kind  of  items  received  as 
classified  for  the  several  ledgers,  which  may  be  made  upon  the  back  of  the  balance  ticket  and 
preserved  with  it.  When  the  checks  have  been  examined  as  to  genuineness  and  regularity  they 
are  canceled  by  a  cutter  or  "  Paid  "  punch.  Mis-sent,  not  good,  and  informal  items  niust  be 
returned  before  being  cut. 

110.  Scale  of  Fines,— Firsf.  All  errors  on  the  credit  side  of  settHng  clerk's  state- 
ment (that  IS,  in  the  amount  brought)  whether  of  footing  or  entry,  and  all  errors  causing 
disagreement  between  the  credit  entries,  the  check  tickets,  and  the  exchange  slips,  each $3.00 

Aw//./.     Errors  in  making  the  debit  (that  is,  amount  received)  entries,  each 2 .00 

TAird.  Errors  in  the  tickets  reported  to  the  clearing-house,  causing  disagreement  be- 
tween the  balances  and  aggregate,  each 

Fourth.     Errors  in  footing  the  amount  received ,  ^^ 

Fifth.  Disorderly  conduct  of  clerk  or  delivery  clerk,  at  the  clearing-house,  or  disregard 
of  the  manager's  instructions,  each  offense ^  ^^ 

Sixth.  Clerk  or  delivery  clerk  failing  to  attend  punctually,  with  statements  and  tickets 
complete,  at  the  morning  exchanges,  each 2  ^^ 

Sei'enth.     Debtor  banks  failing  to  appear  to  pay  their  balances  before  1 130  p.  m 3.00 

Eighth.     Errors  in  delivery  or  receipt  of  exchanges,  each , . 00 

74 


SUBSIDIARY    SUBJECTS 

Forty-five  minutes  from  the  hour  of  commencing,  viz.,  10  o'clock  a.  m.,  will  be  allowed  for  a 
proof.  For  all  errors  remaining  undiscovered  at  11:15  a.  m.,  the  fines  will  be  doubled,  and  at 
12  M.,  quadrupled. 

III.  Rules  of  the  Clearing  House  Association.— /VW/.  Return  of  checks,  drafts,  etc., 
for  informality,  not  good,  mis-sent,  guarantee  of  endorsement,  or  for  any  other  cause,  should  be 
made  before  three  o'clock  of  the  same  day. 

Second.  Reclamation  for  errors  of  any  kind,  in  packages  of  legal-tender  notes  from  the  clear- 
ing-house, in  settlement  of  balances,  should  be  made  before  one  o'clock  on  the  following  day. 

Third.  In  no  case  should  checks,  drafts,  etc.,  be  returned  through  the  exchanges,  except  for 
informality  or  endorsement,  and  then,  in  each  case,  they  should  be  certified,  and  the  amount  limited 
to  $5000  to  each  bank. 

Fourth.  In  case  of  a  missing  item  in  an  exchange,  the  claim  should  be  made  at  once,  by 
returning  the  entire  exchange  with  a  memorandum  stating  the  nature  of  the  claim. 

IL-COMPUTATION  OF  RESERVE. 

IIS.  For  exact  and  complete  information  concerning  the  restrictions  upon  reserve  fund 
imposed  by  the  National  Bank  Act,  the  student  is  referred  to  paragraphs  92  to  106  of  the  act  itself 
as  incorporated  in  the  annual  report  of  the  Comptroller  of  the  Currency  for  1896.  In  general,  the 
act  provides  that  every  national  banking  association  in  the  cities  of  Albany,  Baltimore,  Boston, 
Cincinnati,  Chicago,  Cleveland,  Detroit,  Louisville,  Milwaukee,  New  Orleans,  New  York,  Phila- 
delphia, Pittsburg,  St.  Louis,  San  Francisco  and  Washington,  shall  keep  on  hand  at  least  25  per 
cent,  of  the  aggregate  amount  of  its  deposits;  all  other  associations  are  required  to  keep  15  per  cent. 

One-half  of  the  net  reserve  of  banks  in  the  alwve-mentioned  reserve  cities  may  consist  of 
l)alances  owing  by  banks  approved  by  the  Comptroller.  The  reserve  of  banks  outside  of  the  reserve 
cities  may  consist  of  three-fifths  of  such  balances.  Banks  in  New  York  City  must  keep  the  entire 
amount  of  the  net  reserve  in  their  own  jjossession. 

The  reserve  shown  on  statement  page  61  was  calculated  as  follows:  Subtract  from  the  total 
due  to  banks,  the  total  due  from  banks  as  shown  by  the  bank  and  collection  ledgers;  to  this 
amount  add  the  total  of  individual  deposits,  consisting  of  balances  due  as  per  dealers'  ledgers,  and 
including  outstanding  certificates  of  deposit,  cashier's  checks,  certified  checks,  customs  checks  and 
un|>aid  dividends  as  shown  by  the  general  ledger ;  deduct  the  exchanges  for  clearing-house  and 
cash  items  as  shown  under  heading  of  cash  on  debit  side  of  statement,  also  amount  of  national 
bank  notes  should  there  he  any  on  hand;  one-fourth  of  this  remainder  is  the  required  reserve, 
or  $2,667,779.48.  The  actual  cash  on  hand  consists  of  the  remaining  items  on  the  debit  side  of 
the  statement  below  the  item  "Notes  of  this  bank  on  hand,"  which  is  found  by  addition  to  be 
$2,681,474.02,  or  nearly  $14,000  more  than  the  required  reserve.  This  shows  that  the  bank  could 
not  lend  more  than  $14,000  before  it  would  be  compelled  to  increase  its  cash  on  hand,  which  might 
be  done  by  calling  in  some  of  its  demand  loans. 

The  form  of  blank  used  in  making  reports  to  the  Comptroller  of  the  Currency  is  presented  on 
the  following  page,  and  will  be  readily  understood  if  carefully  studied.  The  calculation  there  given 
applies  to  the  statement  presented  on  page  61,  which  should  be  referred  to  in  connection  herewith. 
In  blanks  provided  for  banks  not  located  in  the  reserve  cities,  the  wording  "twenty-five  per  cent, 
of  this  total  amount,  etc."  is  changed  to  fifteen  per  cent.,  and  "one-half  of  the  Net  Reserve"  is 
changed  to  three-fifths  and  tivo-fifths  respectively. 

The  student  should  compute  the  reserve  from  the  statements  given  on  page  77,  one  of  which  is 
taken  from  a  New  York  bank  where  25  per  cent,  is  the  required  reserve,  and  the  other  from  a 
smaller  city,  where  only  15  per  cent,  is  required.  In  close  computations  it  will  be  observed  that 
nickel  and  copper  coins  cannot  be  counted  as  a  part  of  the  legal  reserve.  National  bank  notes  on 
hand  cannot  be  counted  as  part  of  the  reserve,  but  they  may  be  deducted  from  the  liabilities,  as 
shown  under  the  form  of  re|>ort  to  the  Comptroller  of  the  Currency  on  the  following  page,  which 
form  should  be  followed  by  the  student  in  computing  the  reserve  from  the  statements  to  follow. 

75 


mr 


BANK    BOOK-KEEPING 


5-»» \        GTluk  Kneton  iftoaM  bwr  ia  miai  tku  SMtioa  51910  1  XariMd  autatoi.  fcrbU.  a  ■..k  •. 

by  new  loM.  or  4i««KmU.  «  to  4,,Ui»  wiy  din4«U  rtTiirMlin^  iT^ 


M«  *  But  It  iMrma  i|g  ihMlMa, 


FORM  ^.-Calculation  of  the  Lawful  Money  Reserve  of  National  Banks  located  in  Rese"^ 
•  Cities  and  Central  Reserve  CiUes.  «eaerve 

NouofBuk 


Report  rf  Ike  •late  oftawfiil  money  iwerre  of  the. 

Lo«tad«t *.i6:^^...^<^fc£^.. ,sui.  of  ____c^ 

H.  R.— If  ibi*  aoeofflpuNs  •  Report  of  Coodiiioo  it  thoald  be  •%ii(d  by 
Ifit  aeeompaDica  •  Report  of  E««miii»tioo  it  »hooU  he  »igmd  by 


.A^. 


■~>>d^.«f€ioA^^.m^ 


^^^^^^i^U^^^d/j^^ 


If 


SbooM  the  afgtregBte  "  Doe 
from  "  ezoeed  the  Mmre- 
(5rte  "Doe  to"  Buka, 
both  items  must  be 
ooitled  from  the  caJcu- 


ITEMS  ON  WHICH  RESERVE  IS  TO  BE  COMPUTED. 

Uabilities. 


Doe  to  N.tion.1  Benirs  ...., ltd. 

Due  to  State  Buiks  sml  Rink...  /  fU^  ix  ^  *^'7'7  ¥^S' 

Due  from  other  NatJooal  Bkoka 

Dm  fi«B  State  fiuiU  and  fiaoken  ..|      f( 

Dividends  unpaki.. 

Individual  Deptaiti 

United  States  Deposito 

DepoMta  of  U.  a  Disbaniag  Offioer^ 

Groas  amooni. 
DEDUCTIONS  ALLOWED. 

EnAugM  for  Ckaring-HoiMe 

Chaeka  «■  other  Banka  in  the  same  place 

~         IBnkNotea 


Twenty-five  per  cent  of  thia  total  amount, 

!•  the  entire  Reaerve  required,  which  ia 

'^ISli^'^'-JSS^y'S  *''*'  '"''**"«'  "•  8- 
NctR(aerve«ob«heM 


rr..  ..  ^  a%5 'S26  03 


jLt^Z^ 


^7  0.00 ..... 


ITEMS  COMPOSING  THE  NET  RESERVE  AND  DISTR.BUTION"o7THEliX;^ 


<W-l»«lf  of  the  Net  Reserve  ia 
I 


;«Bg  up  the  Fame  may  oonaist  of* 
J  with  foUowing  approved  Reaerve 
Agenta,vta:  1 -"-i . 


Eaoeas  with  Reaerve  Aei.>nts 

DeieiaBiy  with  Reaarre  Agenta 


«**-^N^R..,n,i, J^^E3^ 

r^i„n-»L.. '-torndtenpthes^n.,  '  ' 


Itema  in  fiank'a 
vis 


Fractional  Silver.. 

Silver  Dolkis 

Silver  TriMwy  Orfa  . 


0«>W  Coin jTjO  TcA  :..... 


CSoJd  TrcMoiy  Ctert's  .^ 

Legal-Tender  Note* 

U.  &.  Cert's  of  DepcMt 
for  Legal-Trnden 


■J..hJ  praj 
^6..^. 


^/^. 


y  OJa. 

— Z  ^JU 


Q.i 


0.b.Q 


E«ee8B  in  ibe  entire  Reserve 


•If  f«ip««U  «»„.«  «.  k^  .itt,  ««^  .^^  „,y  ^ 


Excess  in  itema  MA  by  the  Bank 

De«cien<7  •«>  '•«"»  beW  by  the  Bank 

RECAPITULATION. 

Defidency  ia  the  eatii*  Ifmsiii  haM,  |._ 


>A 


^^ 


nft  anooBi  do*  Ami  rach  agMU  i*  aTsiUUs  tor  itsiiii. 


U-  B-— BMik»  in  N««  York  City  mmI  Is  eUJM  ■       -  ' 

amm»«l «  .b.».,i«  Om,  ,,,  ^l^mL^SL  '»"-'«»«  C«ii»j  %^„,  ciU«  .«|.r  tk.  Mt  Mw«k  *.  ■m.  msI  Viy 


thawM*  net  BMtrva  lafalMl,  wh« 


'••«»•  i"*^  ••  uwi»  ■•,««,  ^e»,4,ii«i 


SUBSIDIARY    SUBJECTS 
Stutcuicnl  where  25  |)er  cent,  reserve  is  required: 

FOURTH    NATIONAL  BANK,  NEW  YORK. 


J.  EnWARD   SlMMDNS,  PreiidcHt. 


No.  290. 


Ch.vrles  II.  rATTKRSON,  Cashier. 


Reaourcea. 

Liabilities. 

Loans  and  discounts 

$24,288,705.76  i 

Capital  stock  paid  in 

$3,200,000.00 

Overdrafts 

1,536.61 

Surplus  fund 

2,000,000.00 

U.  S.  bonds  to  secure  circulation 

50,000.00 

Undivided   profits,   less  current  expenses 

U.  S.  bonds  to  secure  deposits 

and  taxes  paid 

56,677.86 

U.  S.  bonds  on  hand 

National  bank  notes  outstanding 

45,000.00 

rretniums  on  U.  S.  bonds 

State  bank  notes  outstanding 

Stocks,  securities,  etc. 

115,400.00 

Due  to  other  national  banks 

15,404,071,27 

Iktnkiiig-house,  furniture,  and  fixtures 

600,000.00 

Due  to  State  banks  and  bankers 

1 , 9(^,864. (M) 

Other  real  estate  and  niortga^jcs  owned 

Dividends  unpaid 

7.252.71 

Due  from  other  national  banks 

I. '50,305. 38  1 

Individual  deposits 

20,283,655.17 

l)uc  from  State  banks  and  bankers. 

.j«j,477f'4 

Certified  checks 

3,557,158.20 

i  )ue  from  approved  reserve  ajjents 

United  States  deposits 

Cliccks  and  other  cash  items 

71,042.50  ; 

Deposits  of  U.  .S.  disbursing  officers 

Exchanges  for  clearinjj-house 

7.S32,fH;7.93 

Notes  and  bills  rcdiscounted 

Itills  of  other  national  banks 

9,809.00 

ISills  payable 

Fractional  currency,  nickels,  cents 

10.58 

i  Liabilities  other  than  those  alj«ivc  elated 

Sp«ie 

3,701,3*14.50  j 

I.cual-tcnder  notes 

1,311,050.00  ' 

U.  S.  ccrlilicales  of  de|K>sit 

7,310,000.00  1 

Kedemptiim  fund  with  Treasurer  U.  S. 

2,250.00 

. 

Uuc  from  Treasurer  U.  S. 

10,000.00 
$♦6,544,679.90 

Ti.tal 

Total 

$46,544,679.90 

Statement  where  15  |>er  cent,  reserve  is  required: 

EUFAULA   NATIONAL  BANK,  EUFAULA. 

S.    II.   Dkm.  PnsUittt.  No.  230J. 


E.   B.  Young,   Cashier. 


Reaourcea.                                                   . 

Liabilitiea. 

Loans  and  discounts 

$217,534.85  : 

Capital  stock  paid  in 

$100,000.00 

Overdrafts 

24,514.56 

Suri)lus  fund 

25,000,00 

U.  S.  bonds  to  secure  circulation 

25,000.00 

Undivided  profits,  less  current  exiK-nses 

U.  S.  bonds  to  secure  de|X)sits 

and  taxes  paid 

6,262.54 

U.  S.  Imnds  on  hand 

National  bank  notes  outiitanding 

22,51X).00 

I'reniiunis  on  U .  S.  iMjnds 

State  bank  notes  outstanding 

Stocks,  securities,  tic. 

12,921.13 

Due  to  other  national  hanks 

4.931.67 

Itanking-housc,  furniture,  and  fixtures 

I5,tX30.<J() 

i  I  )ue  to  State  banks  and  bankers 

2  36<j.S6 

Other  real  estate  and  mortgages  owned 

16,283.28 

i   Dividends  un])aid 

•jo.oo 

Due  from  other  national  banks 

3,506.27 

Individual  deposits 

119.531.74 

Due  from  State  banks  and  bankers 

l3.4cx).o6 

United  States  de|X)sits 

Due  from  approved  reserve  agents 

3.4S5f'i 

Dejx)sits  of  U.  S.  disbursing  oflicers 

Checks  and  other  cash  items 

8,507.93 

Notes  and  bills  rcdiscounted 

45.048.73 

Exchanges  for  clearing-house 

r.iils  payable 

35,000.00 

Hills  of  other  national  b.tnks 

651.00 

Liabilities  other  than  those  alxive  stated 

Fractional  currency,  nickels,  cents 

46.35 

Specie 

12,758.50 

l.egal-tendcr  notes 

6.000.00 

U.  S.  certificates  of  deposit 

keilemption  fund  with  'Treasurer  U.  S. 

1,125.00 

Due  from  Treasurer  U.  S. 

Total 

Total 

S3f'0.734-54 

•360,734-54 

77 


/ 


BANK    BOOK-KEEPING 
HL-ANALYSIS  OF  BANK  STATEMENTS. 

113.  The  statement  of  the  condition  of  a  bank  epitomizes  in  a  few  fKrures  the  orecise  conHirion 
of  us  resources  and  liabilities,  which  may  be  confirmed  by  cxamination'of  e  bTu  of  Z^^^^^^^ 
I  he  statements  on  the  preceding  page  may  be  referred  to  in  illustration 

hohier  ^'^"T'/  T^  ^''  '""'''f  ''''^'■^''''  "•'"  '*"  ^""''"^^  ''^^''''  "f  '''^"'^■-  (')  a-^ounts  due  to  stock, 
holders;  and  (2)  amounts  due  to  de,x>sitors.  Every  creditor  of  a  bank  is  therefore  nracticallv 
either  a  stockholder  or  a  depositor.  The  first  class  is  subdivided  into  (.)  ;;ita,  stek  ZTs^i- 
mg  sums  paul  n.  by  and  due  to  the  stockholders;  (.)  surplus,  which  is  ma  le  up  7lfits  al^v 

xpenses  and  d.vulends  and  is,  therefore,  at  the  immediate  dis,x,sition  of   the  stockholder'    (^ 
und.vKled  profits,  earn.ngs  accrued  since  declaration  of  previous  dividend  less  current  expanses  am 

axes-pract.cally  same  as  surplus;   (4)  unpaid  dividends,  sums  which  have  been  vote  Uo  s^^ 

int  the  ;.  if ':  ""'  '''  'T  '"^"'-  ''"  "^""'  ^'^^-^  '"^'"^'^^  (')  '^^  --"'-^'"^  -'-  outsL"  - 
.ng,  the  l.uklcr  be.ng  m  reahty  a  preferred  holder  of  a  demand  cert.ficate  of  deposit;  (.)  individual 

d.p..sus    cons.st.ng  of  deposits  represented  by  pass-books,  sums  due  banks  as  de'^>osi  i.  o      ta  d"g 

t.ficates  of  deposu   customs  checks,  cashier's  checks,  certified  checks,  and  dividend  checks    (^ 

_bWlspayable,  compr.smg  notes  issued  by  the  bank  for  money  borrowed,  notes  rediscounted   etc  ^^ 

— Kesources  comprise  three  classes:  (,)  loans  and  discounts;  (.)  real  estate;  and  U)  cash      The 

first  class  consists  of  (.)  time  and  demand  loans;  (.)  bills  discounted;  (3)  ^verdrahs   w  ich  a  c 

practicaly  loans  to  depositors;  (4)  stocks  and  bonds,  which   are  loan^  represented  by  tads  o 

m  banl     '  ['^'''-"T'"'  ""  """'''  '""^'  ''"  ^'^'""^  ^"^'-^  i"^  -^--    •••»-  --n^«  ^'-s  embrace 
.)  bank  ng-house,  furniture,  and  fixtures;    (.)  real  estate  and  mortg'ages  acquired  to  protect  its 
oans  and  securities.     The  third  class  consists  of  cash-either  actual  mtney  in'  bank,  baLs  due 

trivXXanrnr^^^ ''-  ^"^^'"^■'°"^^*  -'-'-  --  ^'-^ '-'--  — ^  ^^  ^- 

Current  expenses  and  taxes  paid,  when  given  as  resources,  represent  cash  which  has  been 
actua  ly  paid  out  for  the  purposes  indicated,  but  the  vouchers  are  held  over  until  thr.  ext  dividend 
period  and  charged  to  Undivided  Profits  before  the  dividend  is  declared 

W.J-  ^T  ^T  '^''r'""'^'  ^-  ^•"  ^""^'^^^  principally  of  notes  .,f  other  national  banks  forwarded  to 
Washington  for  redemption;  this  amount,  therefore,  is  considered  as  part  of  the  cash  reserve 

The  National  Bank  Act  provides  that  every  national  bank  shall  make  to  the  Comptroller  of  the 
Currency  not  less  thaii  five  reports  during  each  year,  according  to  the  prescribed  form  given  on    le 
preceding  page,  which  reports  shall  also  be  published  in  a  news,>aper  where  the  bank  is  established 
1  he  amount  of  each  dividend  and  the  net  earnings  in  excess  thereof  must  also  be  reported 

U  h.  e  much  may  be  learned  from  an  inspection  of  a  single  statement  of  a  bank's  condition  it  is 
not  prudent  to  predicate  the  real  character  of  any  bank  from  a  single  statement.  Ordinarily  a 
large  surplus  and  iindivided  profits  indicate  a  prosfx^rous  business,  but  the  real  condition  hinges 
..,,..„  the  quality  of  the  loans  and  discounts,  <.r  .>f  the  stocks  and  lx>nds  held.  Stocks  bonds 
mortgages,  etc.,  may  be  proved  by  actual  count.  Real  knowledge  of  the  loans  and  discounts' 
i.owever,  can  be  obtained  ..nly  by  co-operation  of  the  l>oard  of  directors,  who  should  be  able  to 
''f!^'""""*=  ^'"^  regularity  and  validity  of  every  loan  that  has  been  authorized  by  them 

part.cularlv  if  the  same  items  are  compared  and  the  increase  or  decrease  carefullv  noted 

I  the  amount  of  the  reser^-e  fund  remains  constantly  below  what  constitute;  the  legal  reserve 
It  indicates  that  the  bank  is  lending  more  than  is  prudent.  Should  the  items  of  surplus  and 
undivided  profits  steadily  diminish,  the  suspicion  would  attach  that  the  earnings  of  the  bank  do  not 
cover  Its  expenses,  dividends,  and  losses. 

IV.-ORGANIZATION  OF  NATIONAL  AND  STATE  BANKS. 

114.     Students  and    others  desiring  authentic  informati<,n  concerning   the  organization  of 
national  banks  are  advised  to  address  a  request  to  the  Comptroller  of  the  Currency,  Washington 
D.  C,  for  a  copy  of  a  pamphlet  entitled  "  Instructions  and  Suggestions  of  the  Comptroller  of  the 


SUBSIDIARY    SUBJECTS 

Currency  relative  to  the  Organization  and  Management  of  National  Banks."  Ample  suggestions  are 
given  as  to  the  successive  steps  required  to  organize  a  national  bank,  and  the  forms  of  articles  of 
associati-)!!  and  by-laws  prescribed.  Desirable  information  as  to  their  general  supervision  and  man- 
agement is  also  incorporated,  concluding  with  a  summary  of  the  princijjal  restrictions  and  require- 
ments of  the  National  Bank  Act. 

The  thoughtful  student  of  banking  and  finance  will  find  much  that  is  stimulating  and  helpful  in 
the  current  rejwrt  of  the  Comptroller  of  the  Currency.  This  report  comprises  two  large  volumes, 
and  may  be  had  upon  proper  appHcation.  The  first  volume  embodies  the  result  of  the 
Comptroller's  comprehensive  and  suggestive  investigation  on  extent  of  the  use  of  credit 
instruments  in  daily  payments,  a  revised  edition  of  the  National  Bank  Act,  a  digest  of 
Federal  and  State  court  decisions  affecting  the  business  of  banking,  besides  valuable  comparative 
tables  and  statistical  abstracts  fnmi  reports  of  State  banks,  loan  and  trust  companies,  savings  and 
private  banks.  The  second  volume  conuins  reports  of  the  condition  of  every  national  bank  in  the 
United  States. 

State  banks  are  organized  subject  to  the  laws  of  the  several  States,  and  they  must  conform  to 
the  regulations  and  restrictions  of  the  Banking  Department  of  the  State  in  which  they  are  located. 
Information  respecting  the  organization  of  a  State  bank  may  be  obtained  by  addressing  the  proper 
Secretary  of  State.  State  banks  are  taxed  10  per  cent,  on  their  circulating  notes,  which  practically 
prohibits  their  issue,  but  they  may  lend  money  upon  real  estate  and  other  forms  of  security  not 
permitted  by  the  National  Bank  Act. 

Private  banks  are  formed  in  the  same  manner  as  ordinary  copartnerships,  and  their  responsi- 
bility hinges  u[K>n  the  integrity  and  credit  of  the  individuals  associated  in  their  management. 

The  auxiliary  books  and  records  used  in  the  organization  of  a  national  bank  are  the  same  as 
those  required  in  any  other  corporation  or  joint-stock  company,  comprising  (1)  the  subscription 
book,  which  contains  the  names  of  the  persons  subscribing  for  the  stock  and  the  number  of  shares 
desired  ;  (2)  the  instalment  book,  containing  a  list  of  the  stockholders  and  the  amounts  paid  in  by 
each  stockholder;  (3)  the  minute  book,  in  which  is  recorded  full  proceedings  of  the  meetings  of 
stockholders  and  the  board  of  directors  ;  (4)  the  stock  certificate  book,  which  contains  receipts 
certifying  to  the  number  of  shares  held  by  each  stockholder  ;  (5)  the  transfer  book,  showing  the 
history  of  certificates  as  canceled  and  new  ones  issued  ;  (6)  the  stock  ledger,  representing  the 
Capital  Stock  account,  each  stockholder  being  credited  when  the  stock  is  issued  and  debited  when 
transferred  ;  and  (7)  the  dividend  book,  showing  the  name  of  each  stockholder,  the  number  of  his 
shares,  and  the  amount  of  dividend  he  is  entitled  to  at  each  dividend  period,  providing  also  for 
receipts  by  signature  as  the  payments  are  made  to  the  stockholders. 

The  opening  credits  in  the  general  books  are  as  follows  :  (i)  Ca/>i/a/  S/>vk,  for  the  sum  actually 
paid  in  by  the  stockholders ;  (2)  Circulation,  for  the  amount  of  notes  received  from  the  Comptroller 
of  the  Currency,  equal  to  90  |>er  cent,  of  U.  S.  Registered  Bonds  deposited. 

The  opening  debits  in  the  general  books  include  :  {})  U.  S.  Bonds  to  Secure  Circulation,  par 
value  of  bonds  bought  and  forwarded  to  the  Treasurer  of  the  United  States  ;  (2)  Premium  on  U.  S. 
Bonds,  being  the  sum  above  |)ar  paid  for  U.  S.  Bonds  to  secure  circulation  ;  {i)  5 per  cent.  Redemption 
Fund,  for  cash  forwarded  to  Treasurer  of  United  States  to  redeem  worn-out  and  mutilated  circu- 
lating notes ;  (4)  Expense,  for  whatever  disbursements  may  be  ordered  by  the  Board  of  Directors  or 
Cashier. 


v.— LETTERS  OF  CREDIT. 

I15«  A  Letter  of  Oedit  is  an  instrument  issued  by  a  banker  and  addressed  to  several 
correspondents,  by  which  the  holder  may  receive  funds  at  different  specified  places  in  amounts  to 
suit  his  convenience,  the  total  drawn  not  to  exceed  the  sum  designated  in  the  letter  of  credit.  A 
traveler  desiring  funds,  presents  his  letter  of  credit  to  the  proper  banker  at  the  place  where  he 
may  happen  to  be  visiting.  The  banker  will  prepare  a  sight  draft  on  the  London  banker  mentioned 
in  the  letter  of  credit,  which  draft  the  holder  of  the  letter  will  be  required  to  sign.  If  the  signature 
on  the  draft  and  the  letter  of  credit  correspond,  the  amount  of  the  draft  will  be  promptly  paid  to 
him  in  the  currency  of  the  country  and  without  further  identification. 

79 


BANK    BOOK-KEEPING 

The  bankers  who  cash  the  successive  drafts  endorse  the  amounts  on  the  back  of  the  letter, 
which  is  reduced  iu  value  to  that  extent,  leaving  the  balance  to  be  drawn  upon  through  the  next 
correspondent  to  whom  application  is  made.  When  the  London  banker  |wys  the  drafts  so  drawn, 
the  amount  of  each  draft  is  charged  to  the  American  banker  who  issued  the  letter,  together  with 
commission  and  interest  charges  according  to  agreement. 

The  commission  charges,  to  the  purchaser,  for  a  letter  of  credit  for  less  than  ^^500,  is  usually 
one  i>er  cent.  Credits  are  issued  either  against  cash  payment,  deposits  of  approved  collateral  or 
satisfactory  guarantee  of  repayment. 


.tmmttmc  ■■*■  m  •/' 


>i^ 


H 


^4;:i^u^ci^^M 


mm. 


^ 

j::i 


l;v>  ?  ^  ^>^  J  >^^v>  ^ 


J^i         4:v^^ 


Banks  having  no  correspondents  in  foreign  countries,  frequently  draw  direct  drafts  for  the  use 
of  their  dealers  through  the  agency  of  foreign  exchange  bankers.  The  draft  is  drawn,  in  this 
instance,  upon  a  correspondent  of  the  foreign  exchange  banker,  a  list  of  whose  correspondents  is 
furnished  to  such  banks  as  intend  to  draw  direct.  A  cashier's  check  for  the  amount  of  the  draft 
including  the  commission,  together  with  a  complete  description  t)f  the  draft  as  issued,  is  imme- 
diately sent  to  the  foreign  exchange  banker,  who  at  once  advises  his  correspondent  by  letter  to 
honor  the  described  draft  ujxjn  presentment.  The  letter  of  advice  will  thus  be  carried  by  the  same 
steamer  and  reach  its  destination  at  the  same  time  or  before  the  arrival  of  the  tiraft.  The  issuing 
bank  becomes,  therefore,  simply  a  purchaser  of  exchange,  and  thereby  avoids  the  necessity  of 
keeping  deposits  at  foreign  places,  or  of  making  further  provision  for  the  payment  of  its  own  drafts. 

VL— DEMAND  LOANS. 

116.  The  accompanying  illustration  presents  a  plan  of  keeping  the  original  records  of  demand 
loans  on  separate  sheets  instead  of  in  books.  The  form  provides  for  part  |iayments,  increase  or 
decrease  of  rate  at  any  date,  and  substitution  of  collaterals.  The  maker  of  a  collateral  note  is 
privileged  to  withdraw  any  or  all  of  his  securities  provided  he  replaces  them  with  other  securities  of 
equal  value,  acceptable  to  the  bank  making  the  loan.  These  substitutions  may  l)e  indicated  by 
drawing  a  red  line  through  the  withdrawn  securities  and  writing  a  description  of  the  substituted 

80 


SUBSIDIARY    SUBJECTS 


securities  in  red  ink  on  the  lower 
|>art  of  the  same  sheet.  .Margins 
to  the  extent  of  20  per  cent, 
above  the  market  value  of  the 
securities  are  usually  required, 
and  the  current  quotations  are 
carefully  watched  that  this  mar- 
gin is  not  encroached  upon  by 
depreciation  of  the  securities. 
The  record  of  a  change  of  rate 
and  the  subtraction  of  part  pay- 
ments will  be  readily  understood 
from  an  inspection  of  the  accom- 
panying form. 

The  form  of  collateral  note 
exacted  from  borrowers  in  mak- 
ing demand  loans,  is  given  below. 
Description  of  the  collateral  is 
frequ^intly  omitted  from  the  body 
of  tl  e  note  and  the  w«)rding 
".\s  per  list"  inserted  instead, 
securities  are  filed  away  :  this 
securiti  s  are  received. 


No.  Sham 


^ 


'^O 


^Cc 


"y^o 


SECURmr 


cm 


bkc(^^dMt 


'j€i^ 


^^-y^ 


l:t^C. 


/^^c^A^/ 


Price 


f^  ^/ 


m 


^ 


Value 


^ 


f^       /7 


/^^ 


/   -j-c 


OtP  c> 


'T^C    €> 


er  ^   *> 


ir 


The  collateral    is  then  listed    upt^n    the  envelope   in  which  the 
plan    is    invariably  followed    when  a   large    number   of   different 


$/fc 


^0.000 


00 


Kew  York, 


■*■««■■<■ 


\Jn  UcnidncL,   for  value  received,  the  undersigned  promise    to  pay  to 

The  Fourth  National  Bank  of  the  City  of  New  York,  or  order,  a.  u,  Banking 

Office  in  New  York  Cilj^  in  funds  current  at  the  New  Yo^l^learing  House,  wuh  interest  from  the  date  hereof  at  the  rate  o\^j^%^ix  cent. 


per  annun 


~A«~DoLLARS  ;  having  deposited  with  the  said  Bank  as 
collateral  .ecuriiy  for  the  payment  of  this  and  an'y  other  liability  or  liabilities  of  the  undersigned  to  the  said  Bank,  doe  or  to  become  due.  or 
which  may  hereafter  be  contracted  or^xistiiu^ the  fonowinR  property,  viz.: 


-  e/^W^ 


(ySjCC^^—  /¥<Qu^ 


of  an  estimated  market  value  of  f.?4^e>Qo  and  the  undersigned  also  hereby  give  to  the  said  Bank  a  lien  for  the  amount  of  all  the  said 
liabilities  upon  all  the  property  or  securities  at  any  time  given  unto  or  left  in  the  possession  or  custody  of  the  said  Bank  by  or  for  the  under- 
tigned,  lor  safe  keeping  or  otherwise,  and  also  upon  the  balance  of  the  deposit  account  of  the  undersigned  with  the  said  Bank,  existing  from 
lime  to  lime.  " 

In  case  of  decline  in  the  market  value  of  the  securities  at  any  time  pledged  for  any  of  the  above  named  liabilities,  the  undersigned 
•grce  10  deposit  with  the  said  Bjnk,  without  notice  or  dem.ind.  additional  securities  sufficient  to  maintain  a  margin  of  market  value  of  the 
•ecuriiies  pledged  equal  lo  twenty  per  centum  of  the  said  liabilities ;  and  in  case  of  failure  so  to  do  forthwith,  this  note  shall  become  at  once 
Oue  and  payable  without  demand  of  payment  therebf,  and  the  said  Bank  may  immediately  sell  and  apply  the  said  securities  in  ihe  manner 
and  with  the  ellect  at  hereinafter  provided. 

1  he  undersigned  do      hereby  authorize  and  empower  the  said  Bank,  at  its  option,  at  any  time,  to  appropriate  and  apply  to  the  pay 
ment  and  extinguishment  of  any  of  the  above-named  obligations  or  liabilities,  whether  now  existing  or  hereafter  contracted,  any  and  all 
moneys  now  or  hereafter  in  the  hands  of  the  said  Bank,  on  deposit  or  otherwise,  to  the  credit  of  or  belonsing  to  the  undersigned,  whether 
the  S3id  obligations  or  liabilities  are  then  due  or  not  due  ;  and  further  agree    that  in  the  event  of  the  insolvency  of  the  undersigned,  all  the  said 
Obligations  and  liabiliiics  shall  become  and  be  immediately  due  and  payable  without  demand  of  payment. 

r  II  *t'**  f'"!!''  '*  .*'*'^*'*''  '"'horiied,  upon  ihe  non  payment  of  any  of  the  liabilities  above  mentioned  when  due,  to  sell,  assign  and  de- 
liver the  whole  of  the  said  securities,  or  any  pnrt  thereof,  or  any  siibsiiiules  therefor,  or  any  additions  thereto,  or  any  other  securities  or 
property  given  unto  or  left  in  the  possession  or  custody  of  the  said  Bink  by  or  for  the  undersigned,  at  any  Broker's  Board  or  at  public  or 
private  sale,  at  the  option  of  lire  said  Bank,  without  eiiher  advertisement  or  notice,  which  are  hereby  expressly  waived. 
•  w.  i  *1  securities  or  property  are  sold  at  public  sale,  the  said  Bank  may  itself  purchase  the  whole  or  any  part  thereof,  free  from  an* 
nghl  of  redemption  on  the  part  of  the  undersigned  which  is  hereby  waived  and  released. 

In  c*»e  of  »-«le  for  any  cause,  after  deducting  all  costs  or  expenses  of  every  kind  for  collection,  sale  or  delivery,  the  said  Bank  may 
apply  the  residue  of  the  proceeds  of  the  sale  or  sales  so  made,  to  pay  either  one  or  more  or  all  of  the  said  liabilities  to  the  said  Bank, 
wneiner  then  due  or  not.  as  it  shall  deem  proper,  miking  propir  rebate  for  interest  on  liabilities  not  then  due,  and  returning  the  overplus, 
U  any,  to  the  undersigned  who  agree     to  be  and  remain  liable  to  the  said  Bank  for  any  deSciency  arising  upon  such  sale  or  sales. 


FORM  OF  COLL.\TERAL  NOTE. 
81 


BANK    BOOK-KEEPING 
Vn.— KINDS  OF  UNITED  STATES  MONEY. 

117.  Below  is  presented  a  table  prepared  by  Mr.  Maurice  L.  Muhlenian,  Deputy  Assistant 
United  States  Treasurer,  New  York,  which  epitomizes  much  that  is  authoritatively  discussed  in  a 
volume  by  the  same  author  entitled  "  Monetary  Systems  of  the  World."  This  table  is  jjariicubrly 
valuable  to  the  student  as  it  presents,  in  condensed  form,  the  legal  status  of  the  entire  stock  of 
circulating  currency  of  the  country. 

In  addition  to  the  general  circulating  currency  presented  in  the  table,  there  are  two  forms  of 
clearing-house  certificates  which  are  used  by  the  associated  banks  to  settle  clearing-house  balances. 
The  first  form  consists  of  certificates  which  represent  actual  deposits  of  gold  coin  at  a  depositary 
chosen  by  the  Clearing  House  Association.  These  are  known  as  Gold  Clearing  House  Certificates, 
their  principal  purj)ose  being  to  save  the  inconvenience,  expense  and  abrasion  incidental  to  the 
handling  of  coin. 

Another  form  of  certificates  has  been  used  among  banks  in  the  larger  clearing-house  cities, 
which  are  issued  by  a  constituted  authority  of  the  Clearing  House  Association,  usually  called  a  "loan 
committee,"  on  deposits  of  securities.  These  securities  are  generally  of  such  character  as  render 
them  readily  convertible  into  cash  if  necessity  arises,  and  the  certificates  are  usually  issued  only  to 
the  extent  of  75  per  cent,  of  the  value  of  the  securities.  They  are  issued  during  jxiriods  of  financial 
stringency  and  are  restricted  to  circulation  among  banks  forming  the  association.  In  New  York, 
following  the  panic  of  1873,  between  September  30,  1873,  and  January  14,  1874,  the  issue  of  such 
certificates  amounted  to  $26,565,000. 

TABLE  SHOWING  THE  PRESENT  STATUS  OF  THE  MONEYS  OF  THE  UNITED  STATES. 


Weight. 


Fineness 

Ratio  tu  Guld . . 


Limit  of  Issue, . 


Denominaliona  . 


Legal  Tender. . 


Receivable 


Exchangeable... 


Gold 
Coin. 


25.8  grains 

to  the  dollar. 

900-1000 


Gold 
Certifi- 
cates. 


Redeemable . 


Unlimited 

coinage 

free. 


10 
1% 


Unlimitctl. 


Ktir  all  dues. 


For  lertifi- 
(.ates  under 
the  limita- 
tion. 


Issue  sus- 
pended so 
long  as  free 
gold  in 
Treasury 
i*  below 

$100,000,000 

$10,000 

5,000 

1,000 

500 

100 

50 


Not  a 
tender. 


For  all 
public  dues. 

For  gold 

coin  at  the 

Treasury, 

or  any  other 

moneys. 


In  Kold 
coin  at  the 
Treasury. 


Silver 
Dollars. 


Silver 
Certifl. 
cates. 


United 
States 
Notes. 


413.5  grams. 


goo-ioQo 
15.98S  to  I 


Require- 
ment to 
redeem 
Treasury 
Notes. 


$• 


Unlimited 

unless 
iithcrwise 
L-ontracled. 


For  all  dues. 


For  stiver 
certificates 

or  smaller 
coin  at  the 

Treasury. 


And  may  be 
deposited 
for  .silver 

certificalcs. 


Silver 

dollars  in 

use. 


$1,000 
500 

lOO 

50 

lO 

10 

5 

3 
I 

Not  a 
tender. 


For  all 
public 
dues. 

For  dol- 
lars »r 
smaller 
coin  at  the 
Treasury. 


lu  silver 
dollars. 


U.  S.  Ctfa. 

of  Deposit 
for  Icfal 
tenders. 


Treasury 
Notes  of 


$346.Mi/>i6 


$1,000 
joo 
too 

50 

ao 
10 

S 

a 
I 

Unlimited 

unless 
otherwise 
contracted. 


For  all 
dues.* 


For  all  kinds 
of  moneys 
except  gold 
certificates. 

In  coin  at 
sub-treasury 
in  New  Vttrk 

and  San 
Franctscn  in 
samsof  $jo 

and  iMrer. 


The  same 

as  United 

States 


Nstional- 

Bank 

Noua.t 


$10,0110 
5,000 


Not  a 
tender. 


Not 
receivable. 


For 
United 
Sutes 


In  United 

Sutes 

notes  at 

sub-treasury 

where 

iisaed. 


-Silver 
bullion  and 
dollars  of 

1I90  in 
Treasury. 

$1,000 
Soo 

lOD 
50 

so 
■o 

5 

a 
t 

Unlimited 

unless 
otherwise 
contracted. 


For  all  dues, 


For  all 

kinds  of 

moneys 

except  gold 

certificates. 


In  coin 

at  the 

Treasury. 


Subsidiary 
Silver 
Coin. 


Volume  of 

United 

Stales  bonds 

and  their 

cost. 


$1,000 
300 

loo 

JO 

ao 

10 

5 


Not  a 
tender. 

For  all  dues 
except 
duties  on 
imports  and 
interest  on 
public  deU. 

For  silver 

and  mim>r 

coin. 


In  '*  lawful 
money  "  at 
the  'I  reas- 
ury  or  bank 
oif  ■ 


j8j.8  gr.  to 

the  dollar. 

900-1000 

•♦•953  t«  • 


Needs  of 
the  country. 


50  cents. 
as  cents. 
10  cents. 


Not  to 
exceed  $io. 


To  the 

amount  of 

$10  for  all 

dues. 


Fur  minor 
coin. 

In  "Uwful 
m«»ne}r "  at 
the  Ireas- 
ury  in  sunu 
of  $aoorBny 
multiple. 


Minor 
Coln.t 


5C  pieie. 

77. 16  grains. 

75  (copper. 

35)1  nickel, 

ic  piece, 

48  grains. 

95  %  copper. 

i%  tin  and 

xioc. 

Needs  of 
the  country. 


5  cents. 
•  cent. 


Not  to 

exceed 

as  ocMs. 

To  the 

amount  of 

as  cents  for 

all  dues. 


In  lawful 
money  at 
the  'I'rcas- 
ury  in  sums 
of  $aoor 
more. 


*  Duties  on  imports  by  regtilation  only,     t  Not  available  for  bank  reserves. 


82 


SUBSIDIARY    SUBJECTS 

Vra.— BANK   EXAMINATIONS. 

118.  The  question  of  honesty  is  not  the  only  question  to  be  settled  by  an  outside  exam- 
ination of  financial  records;  and  more  and  more  is  it  growing  to  be  the  custom  of  large  corporations 
to  have  the  books  e.xamined  at  regular  periods  by  expert  accountants,  both  to  establish  the 
competency  of  the  method,  and  to  prove  the  correctness  of  the  showing.  In  many  of  the  States, 
and  particularly  in  New  York,  a  guild  of  public  accountants  has  been  organized.  In  New  York  this 
body  is  under  the  Board  of  Regents,  and  the  members  having  passed  the  requisite  examination  are 
entitled  to  the  degree  of  "Certified  Public  Accountant."  These  experts  find  ready  employment, 
not  only  in  unraveUng  complicated  entries,  and  suggesting  better  methods  of  book-keeping,  but' 
in  examining  business  books  of  large  concerns  with  a  view  to  auditing  the  records. 

A  bank,  beyond  all  other  corporations,  is  a  public  institution.  It  represents  the  people  in  a 
peculiarly  sacred  sense.  It  keeps  their  money  on  trust,  and  is  their  financial  agent  in  ways  that 
demand  the  strictest  integrity,  and  the  greatest  candor.  To  such  an  extent  is  this  true  that  both 
the  State  and  the  Nation  are  called  upon  to  exercise  supervisory  powers;  and  beyond  this,  detective 
devices  are  used  by  the  banks  themselves  both  to  intercept  dishonesty  on  the  part  of  employees 
and  to  afford  to  the  honest  clerk  the  means  of  holding  himself  free  from  suspicion. 

Notwithstanding  these  precautions  and  safeguards,  a  bank  offers  peculiar  opportunities  for  the 
practice  of  fraud,  which  even  the  best  systems  of  supervision  cannot  wholly  prevent. 

Among  these  opportunities  may  be  mentioned  (1)  working  in  collusion  with  the  depositor,  by 
destroying  a  paid  check  and  omitting  the  amount  from  the  pass-book  and  ledgers;  (2)  carrying  a 
credit  temporarily  from  one  depositor's  account  to  another's,  thereby  permitting  the  latter  to 
overdraw  his  account;  (3)  using  the  same  vouchers  or  coupons  more  than  once;  (4)  changing 
amount  of  deposit  ticket  before  entering,  substituting  a  new  deposit  ticket,  increasing  an  amount 
previously  entered  to  the  depositor's  credit,  or  decreasing  the  amount  of  a  check  that  has  been  paid. 

There  are  various  more  or  less  sure  methods  of  guarding  against  these  and  other  fraud 
devices;  the  best  of  which  is  to  use  such  a  system  of  book-keeping  and  such  safeguards  as  will 
make  false  entries  difficult  and  hazardous,  and  then  keep  constant  watch  of  the  books,  first  by 
frequent  transfers  of  clerks  from  one  department  and  from  one  set  of  books  to  another,  and  next, 
by  having  the  books  frequently  examined  by  skilled  bank  accountants.. 

The  suppression  or  substitution  of  deposit  tickets,  charge  tickets,  etc.,  can  be  prevented  by 
requiring  all  tickets  to  be  signed  or  punched,  in  a  manner  not  easily  imitated,  and  recorded  by  the 
teller  through  whose  department  they  pass  before  being  delivered  to  the  book-keepers. 

It  is  desirable  that  deposit  tickets  and  ])aid  checks  as  received  from  the  book-keepers  should 
be  assorted,,  and  each  depositor's  checks  and  tickets  filed  away  by  themselves.  The  credit  tickets 
for  loans,  collections,  etc.,  having  been  signed  by  the  cashier  and  cut  by  a  teller,  it  becomes 
impossible  for  fal.se  entries  to  be  made  from  these  tickets  without  discovery.  The  accounts  of 
each  depositor  can  also  be  checked  directly  from  the  vouchers  without  reference  to  his  pass-book. 

One  of  the  most  essential  safeguards  is  the  use  of  two  ledgers  for  dealers'  accounts,— a  dealers' 
ledger  and  a  skeleton  balance  ledger  (see  pages  58  and  59),_kept  by  different  clerks,  one  ledger 
thus  forming  a  constant  check  upon  the  other.  A  convenient  form  of  dealers'  ledger  contains  three 
columns,  a  debit,  a  credit,  and  a  balance  column.  This  latter  column  facilitates  the  comparison  of 
balances  with  the  skeleton  balance  ledger,  which  may  be  done  each  morning  before  banking  hours 
by  some  clerk  other  than  the  book-keepers. 

As  an  additional  safeguard  the  same  lx)ok-keeper  should  not  be  i>ermitted  to  take  off  two 
successive  trial  balances  of  the  same  ledger.  Pass-books  should  not  be  settled  by  the  book- 
keepers, nor  should  they  have  access  to  vouchers  or  retain  statements. 

Another  book  that  is  an  essential  part  of  an  efficient  system  is  a  register  of  pass-books.  This 
book  should  be  kept  by  a  special  clerk  or  auditor,  who  should  settle  the  pass-books  and  compare 
each  balance  with  the  duplicate  accounts  in  the  ledgers.  A  convenient  form  of  this  register  pro- 
vides a  space  at  the  left  for  the  names  of  depositors  followed  by  twelve  money  columns,  representing 
each  month  in  the  year.  When  the  pass-book  is  settled  the  date  and  balance  are  entered  in  the 
proper  column.     A  glance  at  this  book  would  show  an  officer  how  often  each  dealer's  pass-book  had 

83 


I 

{ 


BANK    BOOK-KEEPIN(; 

been  setileil  and  the  successive  balances  at  the  time  of  settlement;  and  he  would  know,  what  is 
even  more  important,  what  pass-hooks  had  not  been  settled,  and  could  have  them  promptly  called 
in  for  settlement.  The  efficiency  of  this  record  may  be  still  further  enhanced  by  having  columns 
which  show  when  the  pass-book  was  received,  number  of  vouchers,  the  name  of  the  person  to  whom 
delivered,  and  the  date  when  delivered. 

Pass-books  should  be  balanced  regularly  each  month,  and  checked  with  the  dealers'  ledgers, 
omitted  credits  being  checked  from  the  receiving  teller's  records  and  from  the  collection  and 
discount  departments.  Canceled  checks  should  be  listed  by  date  and  amount  upon  a  special  sheet 
of  voucher-list.  This  list  may  be  written  up  daily,  ready  for  delivery  to  the  dealer  when  the  pass- 
book is  settled,  thereby  avoiding  the  necessity  of  writing  the  checks  in  the  pass-book.  Frequent 
examinations  of  the  entire  records  of  the  bank  should  be  maintained,  and  careful  count  made  of 
the  cash,  securities,  collateral,  etc. 

Opinions  differ  among  bank  managers  as  to  the  best  method  of  bank  examinations.  Some 
select  an  examining  committee  from  among  the  clerks;  others  employ  ex{>erts  to  make  a  complete 
audit  of  all  dei)artments  once  or  twice  a  year;  others  shift  the  clerks  at  unexjiected  intervals; 
while  still  others  employ  an  auditor  to  examine  one  department  monthly,  the  succession  of  the 
departments  so  audited  l>eing  constantly  changed. 

The  latter  plan,  which  permanently  provides  for  the  position  of  auditor,  has  been  adopted  in 
many  New  York  banks,  and  possesses  advantages  that  are  apparent.  The  auditor  examines  the 
different  departments  at  irregular  intervals,  and  reports  the  result  of  the  investigation  direct  to  the 
cashier.  In  addition  to  his  duties  as  auditor  he  furnishes  information  to  de|>ositors  concerning 
their  accounts,  balances  and  delivers  pass-books,  receives  reconcilements  from  correspondents, 
and  thus  effectively  prevents  collusive  communication  between  the  book-keepers  and  the  bank's 
customers. 

A  competent  bank  auditor  should  possess  thorough  familiarity  with  bank  routine,  a  compre- 
hensive knowledge  of  bank  accounting,  clear  information  concerning  tellers'  and  l)ook-keepers' 
proofs  and  their  relation  to  each  other,  and  have  had  much  experience  in  the  actual  practice  of 
bank  examining. 

The  first  requisite  of  a  careful  bank  examination,  whether  made  by  an  examiner  or  auditor,  is 
that  the  department  to  be  examined  should  receive  no  information  of  it  in  advance;  if  the  least 
chance  be  given  beforehand  to  prepare  for  the  examination,  a  defaulter  can  generally  defeat  the 
best  of  systems. 

As  suggestive  of  the  various  points  to  be  covered  by  the  auditor,  the  following  outline  fof 
examination  of  the  different  departments  is  submitted: 

Count  all  cash  and  compare  same  with  amount  called  for  by  the  paying  teller's  proof.  List  all 
checks  that  have  been  paid  during  the  day,  and  scrutinize  all  charges  made  by  him  to  the  tellers, 
cash  items,  so-called,  clearing-house  transactions,  and  all  irregular  entries.  Note  what  tickets  are 
held  in  his  cash,  and  see  that  the  total  cash  on  hand  together  with  the  checks  paid  during  the  day, 
added  to  the  amounts  charged  to  other  tellers,  etc.,  equals  the  amount  of  his  cash  at  the  close  of 
the  previous  day. 

Verify  receiving  teller's  proof  by  counting  his  cash  and  listing  all  checks  drawn  on  other  banks 
received  among  the  deposits  during  the  day,  and  see  that  all  checks  intended  for  the  clearing-house 
have  been  properly  transferred  to  the  clearing-house  sheet.  Carefully  examine  city  and  foreign 
office  items,  being  certain  that  nothing  is  held  which  is  not  collectible  next  day  or  cannot  be 
properly  charged  to  corresjx)ndents.  List  all  checks  drawn  on  the  bank,  received  among  the 
deposits  during  the  day,  which  together  with  checks  on  other  banks,  city  and  foreign  office,  and 
his  cash,  should  each  equal  the  total  amount  of  deposits  received,  which  should  also  be  listed  and 
footed.  Great  care  should  be  taken  that  none  of  the  checks  drawn  on  o^her  banks  are  fictitious, 
or  have  not  properly  come  through  other  departments  of  the  bank. 

Check  third  teller's  proof  and  count  his  ca.sh.  Carefully  examine  all  charges  made  to  out-of- 
town  correspondents  from  the  foreign  office  of  the  previous  day,  proving  same.  Check  city  office 
of  the  previous  day,  noting  that  everything  has  been  collected  which  is  called  for  by  the  proof  of 
that  day.     Carefully  call  back  all  mail  received  on  day  of  examination,  observing  that  the  proper 


SUBSIDIARY    SUBJECTS 

entries  have  been  made  for  same.  Prove  additions  to  the  clearing-house  sheet,  and  scrutinize  ali 
items  which  appear  to  come  from  other  departments  and  check  back  to  their  source.  Examine  all 
notes  left  for  collection,  past-due  items,  irregular  items,  and  see  that  no  checks  are  fictitious,  and 
that  there  are  no  checks  taken  from  the  mail  that  have  not  been  credited.  Notes  left  for  collection 
may  be  proved  by  the  tickler  ordinarily,  but  if  any  have  been  purposely  omitted  by  the  collection 
clerk  the  correct  amount  can  only  be  determined  by  examination  of  the  pass-book  of  the  depositor, 
which  contains  a  memorandum  in  the  back  of  the  book;  notes  and  items  sent  away  for  collection 
should  be  verified  by  correspondence. 


M  •  imriH  M  Ml  tprt  II  HMat  w  cimvMtaft  iM  iniHi  iMii  u  If  tlplv  H  flM  M 1^ 


To  Tkt  Ftmrik  Nmtumal  B*nk 

of  tk*  CUy  of  Ntw  York. 


J8g 


•fi- 


Your  statement  of  aeeount  rendered  to. 


hmt  been  examined  and  agrees  with  our  books  with  exceptions  {if  any)  noted  below. 


..showing  balance 


Dr.  THB  rODBTB  lATlOliL  Bill  OF  THE  CITT  OF  lEf  TOBL  n  aooouit 


WITB- 


JiTIOIAL  Bill  OF  ... 


RKCONCILEMENT   OF   ACCOUNTS    TO. 


..Cashier. 

Cr. 


.18Q 


▼•  B*Mt  (not  in  your  aceouot.) 


ItaittMMiaTnadt, 


Tm  BiUt  (not  o«  oar  Books.) 


TNr(«tkV.T.Ii]aMi) 


>S>' 


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Wt  CMit  (not  in  your  account,) 


finfti  bnud  (OuUtanding)  Not 


Toa  (Sndit  (not  on  our  Books,) 


OvSaluoi, 


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jiifHIi  ALtSTofM 
AafHial*  dnili,  plmi  ^ 


will  ooafv  •  f«Tor  by  filUiif  np  and  rebirniog  the  above  bUak.  In  reporting  DiSerencm  be  particulv  to  tute  DATE  of  Charge  or 
charted  or  ereditad  by  yoo.  In  referrlB(  to  renituncei  pleaie  adviie  DATE  of  letter  containing  them.  WHEM  due  and  WHERE 
■■g  DRAFTS  ia  daairad  for  refereocc  in  eaae  of  inquiry ;  iu>t  neeoaary.  boweeer,  giving  in  detail  tlwae  laat  itauad.  Wtaen  iuaing 
I*  twr  accoaBta  nodarcd  yoa.  aad  advlae-ua  of  auch  iaaaa  and  eaanhiatioi^ 

FORM    OF    RECONCILEMENT. 


List  bills  discounted  or  compare  with  discount  register  and  prove  same  with  general  ledger. 
Any  bills  discounted  that  are  away  for  acceptance,  collection,  etc.,  must  be  proved  by  letter,  noting 
particularly  that  all  have  been  actually  sent,  as  some  may  have  been  ordered  back,  prepaid,  etc. 
Report  all  past-due  paper,  collateral  loans  not  covered  by  required  margin,  and  any  collateral  for 

8$ 


BANK    BOOK-KEEPING 

which  no  quotations  can  be  found.  Compare  special  deposits  with  list,  see  that  proper  receipts  have 
been  taken  for  those  delivered,  and  list  any  securities  which  are  not  held  as  special  deposiu  or 
collateral  to  loans. 

Take  proof  of  general  ledger.  Count  and  prove  all  bonds,  stocks,  and  mortgages  called  for  by 
the  general  ledger,  verifying  by  correspondence  those  that  are  held  elsewhere.  Examine  current 
expenses,  taxes  paid  and  Premium  account,  being  certain  that  no  irregular  entries  have  been  made. 
List  and  prove  cashier's  checks  outstanding,  and  verify  Certified  account.  Write  reserve  agent 
and  all  correspondents  to  advise  the  auditor  at  his  private  address  the  balance  due  the  bank  at 
close  of  business  on  date  of  examination. 

After  the  auditor  has  taken  charge  of  the  book-keeping  department,  the  general  book-keeper 
should  be  instructed  to  take  off  a  proof  of  the  general  ledger,  and  the  book-keepers  should  not  be 
again  permitted  to  touch  the  dealers'  ledgers  until  every  balance  has  been  struck  and  carefully  taken 
off  by  the  auditor  or  his  assistants.  The  differences,  if  any,  may  be  found  and  checked  up  at  any 
time  later. 

Accounts  in  the  general  ledger  may  be  proved  in  most  cases  by  the  vouchers  connected 
therewith.  Bonds  to  secure  circulation  and  redemption  fund  are  proved  by  receipts  and  letters  of 
advice  from  Treasurer  U.  S.;  certificates  of  deposit,  cashier's  checks,  etc.,  by  stub  of  books; 
securities,  by  actual  count;  expenses,  by  receipts;  bank  balances,  by  reconcilements— an  excellent 
form  for  this  purpose  being  given  on  page  85.  A  record  of  reconcilements  should  be  kept  in  a  book 
arranged  similar  to  the  register  of  pass-books,  previously  described.  It  should  show  the  date  at 
which  the  reconcilement  blank  was  mailed  to  the  correspondent  and  the  date  upon  which  it  wa» 
returned,  together  with  the  balance.  Reconcilements  should  be  required  monthly  and  all  errors, 
discrepancies,  etc.,  promptly  investigated  and  adjusted. 

DC— THE   BASIS   OF   LOANS. 

119.  It  has  been  shown  that  the  earnings  of  a  bank  come  mainly  through  the  loaning  of  its 
money;  and  it  is  easily  seen  that  if  the  money  paid  in  by  stockholders  were  the  only  available  fund 
for  loaning  it  would  be  impossible  to  pay  the  running  expenses,  to  say  nothing  of  earning  dividends. 
In  fact,  it  is  the  depositors'  money  that  is  loaned;  and  hence  the  bank  is  bound  to  see  that  the 
least  possible  risk  is  encountered.  As  far  as  it  can,  the  bank  should  make  sure  of  the  repayment 
of  its  loans  before  they  are  ventured.  To  the  greatest  extent  this  is  done  by  requiring  the  deposit 
•  of  collateral  security  in  the  way  of  marketable  paper,  which  can  be  realized  upon  at  once  in  default 
of  payment.  It  is  customary,  also,  to  require  in  each  case  one  or  two  additional  names  as 
endorsers;  although  it  has  now  become  the  prevailing  practice  for  banks  to  invest  quite  extensively 
in  what  is  technically  known  as  "single-nam6  paper."  This  species  of  paper  is  issued  by  well- 
known  houses  who  sell  their  goods  on  open  account,  and  as  the  old  method  of  settlement  by  note  has 
nearly  disappeared  in  all  lines  of  trade,  the  merchant  who  does  a  large  business,  and  who  desires  to 
pay  promptly  for  his  purcha.ses,  is  obliged  to  borrow,  which  he  does,  upon  his  open  accounts. 

But  upon  whatever  basis  bank  loans  are  made  the  question  of  personal  credit  or  responsibility 
is  an  important  factor;  and  hence  it  is  that  every  well-conducted  bank  must  have  within  itself  the 
means  of  knowing  the  standing  of  its  dealers.  It  is  even  the  custom  of  banks  to  require  of  new 
depositors  such  assurance  of  their  standing  as  will  render  the  future  relations  equitable  and 
unembarrassed. 

The  credit  man  of  a  bank,  whether  he  be  one  of  its  regular  officers  or  especially  appointed  for 
that  work,  should  be  not  only  a  shrewd  and  far-seeing  man  but  should  possess  an  even  temperament, 
and  no  end  of  patience.  He  should  have  a  clear  insight  into  business,  as  well  as  into  the  motives 
of  men;  should  be  able  to  detect  at  a  glance  any  evidence  of  crookedness  or  even  of  weakness. 
The  borrower  of  money  is  interested  in  making  a  fair  showing,  not  only  of  his  financial  ability  but 
of  his  integrity;  and  if  there  are  any  loop-holes  in  either,  he  will  do  his  best  to  conceal  them.  It 
is  the  credit  man's  business,  however,  to  discern  them;  and  he  must  do  it  without  disclosing  his 
method  or  giving  offense.  It  is  a  delicate  matter  to  refuse  accommodation  to  a  dealer;  but  some- 
times it  must  be  done,  and  it  can  be  done  by  a  tactful  man  without  disturbing  friendly  relations. 

86 


SUBSIDIARY    SUBJECTS 

The  three  things  requisite  in  a  borrower  are:  (1)  character,  (2)  capacity,  and  (3)  capital.  The 
first  two  are  ascertained  by  general  repute,  personal  investigation,  and  the  consulting  of  reliable 
authorities. 

There  are  many  things  that  enter  into  what  is  known  as  business  character.  Integrity,  of 
course,  lies  at  the  bottom  of  it;  but  personal  habits  have  to  do  with  integrity,  and  so  the  credit 
man  is  careful  to  note  personal  habits,  as  well  as  personal  history.  Is  the  man  in  the  habit  of 
meeting  his  engagements  promptly  ?  Is  he  economical  in  his  living  ?  Is  he  conservative  or  is  he 
reckless  in  his  business  ?  Does  he  give  extensive  credits,  and  is  he  slow  in  collecting  his  debts  ? 
Does  he  frequent  saloons  ?  Is  he  careful  as  to  his  associates  ?  Does  he  gamble  ?  Is  he  frequently 
tempted  to  take  a  "flyer"  in  the  stock  market  ?  Is  he  strictly  honest,  and  unfalteringly  truthful  ? 
How  does  he  stand  in  the  estimation  of  his  neighbors  ?  These  are  little  questions  in  themselves, 
but  viul  to  the  credit  man,  and  he  never  fails  to  consider  them. 

As  to  cai>acity,  he  must  ascertain  if  the  would-be  borrower  is  a  man  of  experience  and  of  broad 
views;  if  he  is  what  is  known  as  level-headed.  Can  he  see  the  end  from  the  beginning  ?  Is  he  a 
good  judge  of  men  ?  Does  he  give  i>ersonal  attention  to  his  affairs,  and  is  he  a  master  of  detail  ? 
Does  he  watch  his  competitors,  and  know  just  what  is  hapi)ening  in  his  line  ?  Does  he  keep  up 
with  the  times  ?  Is  his  store  attractive  and  popular  ?  Does  he  advertise  his  business  judiciously  ? 
Is  he  interested  in  outside  enterprises  ? 

Even  if  all  these  considerations  are  in  his  favor  the  matter  of  capital  should  be  seriously  con- 
sidered, and  to  this  end  it  is  not  unusual  to  require  a  detailed  signed  statement  of  the  financial 
condition.  Such  a  requirement  is  no  impugnment  of  unsoundness;  it  is  simply  a  business  proposi- 
tion which  should  be  cheerfully  and  promptly  met,  and  which  the  borrower  would  do  well  to 
voluntarily  offer.  The  National  Association  of  Credit  Men  thus  characterizes  the  propriety  and 
fitness  of  the  signed  statement:  "Good  credit  in  the  markets  of  the  worid  enables  every  merchant 
to  add  to  his  ability  to  do  business.  It  gives  him  the  use  of  enlarged  capital,  thus  enabling  him  to 
carry  a  more  complete  stock,  increase  his  sales,  and  enlarge  his  profits.  Large  means  are  not  always 
necessary  to  the  creation  of  credit;  what  is  most  desirable  is  that  credit  be  in  proper  proportion 
to  the  actual  means,  and  in  harmony  with  the  conditions  which  create  and  maintain  it.  A 
merchant's  capital  is  the  sum  of  his  net  available  resources,  plus  his  credit— the  giver  of  credit  is  a 
contributor  of  capital,  and  becomes,  in  a  certain  sense,  a  partner  of  the  debtor,  and  as  such  has  a 
perfect  right  to  the  fullest  information  concerning  the  debtor's  condition  at  all  times."  The 
questions  asked  on  a  Correct  Statement  blank  are  of  a  nature  not  only  to  show  the  condition  of  the 
business  but  tend  to  indicate  the  character,  prudence  and  business  sagacity  of  the  man.  Many  a 
merchant  has  been  saved  a  loss  and  had  his  condition  much  improved  by  the  thoughtful  and 
observing  credit  man  suggesting  an  increase  of  insurance,  a  decrease  in  the  rate  of  interest,  a 
cutting  down  of  indebtedness  through  the  reduction  of  surplus  stock,  and  even  urging  the  collection 
of  large  outstanding  accounts.  And  all  this  is  for  the  benefit  of  the  man  who  has  made  a  full 
showing  of  his  affairs. 

If  a  bank  is  called  upon  to  show  preference  in  the  applicants  for  loans  it  will,  other  things 
being  equal,  prefer  its  own  best  dealers;  those  who  keep  the  largest  and  most  uniform  balances, 
and  who  are  not  its  most  frequent  borrowers;  and  while  there  is  no  rule  requiring  it,  a  reasonable 
view  of  its  position  as  a  conservator  of  business  prosperity  will  incline  it  to  favor  good  commercial 
paper  rather  than  that  based  on  the  more  purely  speculative  ventures. 

It  is  along  these  lines  and  from  these  considerations  that  a  bank  is  properiy  defined  to  be  "a 
trader  in  money  for  the  security  of  creditors  and  the  convenience  of  debtors." 


87 


INDEX. 


I 


■ 


Advice  of  payment,  30,  31,  32 
Analysis  of  bank  statements,  78 
Assistant  cashier,  7 
Auditor,  84 
Auxiliary  books,  79 

Bank  management,  5,  83 

Bank  deposits,  11 

Balance  ledgers.  55.  56,  57,  59 

Balance  ticket,  71 

Basis  tor  loans,  86 

Bills  discounted,  18,  21,  22 

Book-keepers,  7,  8,  48 

Boston  system,  59 

Call  loans,  20,  80 

Cancellation,  15,  74,  84 

Capital  stock,  6,  78,  79 

Cashier,  6 

Cashier's  checks,  39,  56  (note) 

Cash  items,  16,  41 

Certification,  15 

Certificates  of  deposit,  38 

Charge  tickets,  18.  19,  21,  31,  40 

Check  clerk,  7 

Check,  form  of,  14,  39 

Chief  clerk,  7 

Circulation,  50  (note),  78,  79 

City  office,  11,  12,  16.  38,  41 

Clearing-house,  9,  10,  68 

Association,  68 

Balance  ticket,  71 

Certificates,  82 

Claims,  74 

Credit  ticket,  71 

Delivery  clerk's  statement,  69 

Exchanges  from,  74 

Fines,  74 

Manager's  receipt,  73 

Preparation  of  exchanges.  68 

Proof,  72,  73 

Routine,  70 

Rules,  75 

Settling  clerk's  statement,  69.  70 
Collateral,  20,  21,  81 
Collateral  note,  81 
Collection  accounts,  25,  26 
Collection  clerk,  7,  25 
Collection  charges,  25,  33 
Collection  register.  26,  28 
Computation  of  reserve.  75,  76,  77 
Credit-books,  40,  42,  43.  48.  53 


Credit  department,  86 
Credit  tickets,  18,  21.  31,  71 
Customs  checks,  38,  39 

Debit-books,  40.  42.  48,  51 
Delivery  clerk,  69 
Demand  loans,  20,  80 
Dei>osit  ticket,  9 
Discount  clerk,  8,  18 
Discount  register,  18 
Discount  tickler,  19,  20 
Dividend-book,  79 
Drafts,  40 

Duplicate  ledgers,  58.  83 
Duties,  how  paid,  38,  39 

Earnings.  5 
Endorsements,  29,  30 
Examinations,  83 
Exchange,  11,  20.  40.  49  (note) 
Exchanges,  10,  68.  70,  74 

First  teller.  8.  14,  15,  16 
Foreign  office.  11,  12,  25,  41 

General  balance  ledger.  55,  56.  57 
(General  book-keeper,  8.  48.  62.  63 
General  credit-book,  48,  53 
General  debit-book.  48,  51 
General  ledger.  48 
General  proof,  62,  63 

Instalment-book,  79 
Interest,  22,  50  (note) 

Kinds  of  U.  S.  money,  82 

Ledger-keeper.  7.  58,  59 
Ledgers.  48,  56,  58.  59.  84 
Letter  of  advice,  26,  31,  32 
Letter  of  credit,  79.  80 
Liabilities,  61.  78 
Listing  clerk,  7,  10,  69 
Loan  tickets,  21 

Manager  clearing-house,  68,  73.  74 
Messengers,  38 
Minute-book,  79 

Note  teller,  8,  38,  40,  41 

Officers,  6 

88 


Offering- book,  18 
Opening  entries,  79 
Organization  of  banks,  78 
Overdrafts,  14,  78 

Pass-book,  10.  83,  84 

Paying  teller,  8,  14 

l»osting.  55,  57.  58 

Preparation  of  exchanges,  10,  68 

President.  6 

Private  banks,  79 

Protest,  22 

Qualified  endorsements,  29 

Receiving  teller,  8,  9 
Reconcilements,  85.  86 
Reciprocal  accounts.  25 
Redemption  fund,  51  (note).  78.  79 
Remittance  letters,  26,  27,  28,  31,  32 
Remittance  register.  28,  29 
Reserve  fund,  6.  61,  75,  78 
Resources,  60,  78 
Returned  checks,  50  (note).  74 
Route-book,  38 

Second  teller,  9 
Securities,  20,  21,  80,  85 
Settling  clerk.  10.  69,  70 
Signature-book,  9 
State  banks,  79 
Statement,  60,  61,  63,  70.  77 
Statement  of  condition.  60,  77,  78 
Stock  certificate-l>ook.  6.  79 
Subscription-lx>ok.  79 
Supplementary  books.  48 
Surplus,  78 

Table  of  U.  S.  money.  83 
Taxes,  65  (note).  78 
Tellers'  differences,  16  (note) 
Third  teller.  8.  38 
Tickets,  18,  19,  21,  31,40 
Ticklerizing,  19,  29 
Time  collections,  25,  30,  31 
Time  loans,  20 
Transfer-book,  79 

Undivided  profits,  67,  78 
United  States  money,  82 


Vice-president,  6 


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■lUN  1  1  ,i,2ii 


Date  Due 


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Packard 
Bank  book- keeping 


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PBB9    1832 


END  OF 
TITLE 


